By Kristin Myers, Editor-in-Chief

What's Happening Today

The White House is considering a federal gas tax holiday to help American consumers who have been getting slammed at the gas pump as prices hover near record highs. But with the federal gas tax sitting at just over 18 cents a gallon, most drivers in the country would only save a few dollars when they try to fill up.

The Federal Reserve has promised to get more aggressive about fighting inflation, after the Consumer Price Index (CPI) surged 8.6% in May compared to a year ago, a fresh 40-year high. But bringing down rising prices of goods and services will come at a cost: By slamming the brakes on the economy, economists and business leaders say that a recession by the end of 2022 or early next year is increasingly likely.

While this doesn't mean a recession is guaranteed, it's still best for Americans to get prepared for a potential economic slowdown that may increase unemployment and wage losses. Now is the time to increase emergency savings, pay off debt, and avoid making large purchases.

U.S. stock markets are surging today, with the Nasdaq gaining close to 3% early in the day after a tough week that saw broad-based sell-offs for equities. The rebound comes ahead of testimony before Congress tomorrow and on Thursday from Federal Reserve Chair Jerome Powell on monetary policy. Investors will be looking to his address for insights into the central bank's stance on addressing persistent inflation and recession risks.

- Kristin

Editors' Picks

Gas Prices, Supply Chain Risks Sour CEOs on Economy (The Balance)

US Recession This Year Is Now More Likely Than Not: Nomura (Bloomberg)

Biden Says He's Considering Gas Tax Holiday as Admin Targets July 4 Announcement (CNBC)

How Does the Fed Influence Interest Rates? (The Balance)

Should You Invest During a Recession? (The Balance)

I Got a New Job. Now What? (The Balance)

How To Buy Series I Bonds for a Portfolio (The Balance)

Off the Charts

Conditions that pushed gas prices past the $5-per-gallon milestone in recent weeks are finally easing, but analysts say prices aren't likely to fall significantly over the course of the summer.

Number of the Day

18.4 Cents - That's how much less a gallon of gas could cost if a federal gas tax holiday were enacted—something the Biden administration says it's considering.