Focus on Possible Government Shutdown: 5 Things to Know for the Week

The threat of a government shutdown looms as lawmakers reconvene Monday afternoon. Late Sunday, Congress showed no signs of an agreeable measure to thwart off a shutdown, possibly the first such occasion since 1996.

• On Monday, AIG Bank will cease operations for retail deposit accounts. All existing accounts will be closed automatically. The bank had notified customers of the move in late July and all account transactions were no longer processed starting Sept. 13, in preparation of the account closures. AIG Bank is undergoing a transition from a traditional savings bank to a trust-only thrift.
• As the last quarter of the year arrives, certain cash back credit cards will begin offering bonus cash back on new categories. Chase Freedom, Citi Dividend, Discover It and U.S. Bank Cash+ card members will have to enroll for the quarter’s new categories that earn 5% cash back.
• For the government, the fiscal year begins Oct. 1, when the government may shut down because of divided policies on spending. A House bill was passed last week that would prevent a government shutdown, but it would delay the activation of the Affordable Care Act by one year. The Senate is likely to reject that bill. If there is a government shutdown, Americans can expect national parks and museums to close but postal service will be unaffected.
• On Tuesday, each state’s health insurance exchange will go live as part of President Obama’s Affordable Care Act. Through March 2014, people can begin signing up for health care coverage. The Obama administration does not expect a major flood of enrollments in the initial weeks of availability. The President said that the exchanges will open, even in the event of a government shutdown.
• The U.S. Bureaus of Labor Statistics will release the next jobs report on Friday. In recent months, the unemployment rate has dropped steadily to 7.3 percent in August. Since the Federal Reserve is using the jobless rate as the economic indicator to determine when it’ll raise interest rates, a decline rate is a good sign for savers. The central bank plans to hike rates when the unemployment rate drops to 6.5 percent.
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