Consumer News: Will the Federal Reserve cut interest rates next week?

Motorists in California would save the most

By Mark Huffman of ConsumerAffairs

• California drivers would save the most from a temporary suspension of state and local gasoline taxes about $35 on a 50-gallon monthly fuel purchase.

• Drivers in Alaska would see the smallest savings, at roughly $4.50 a month.

• The average U.S. driver would save about $16.50 a month if state and local gas taxes were suspended nationwide.

As gasoline prices remain a major household expense, some lawmakers have revived the idea of temporarily suspending state gasoline taxes to provide relief at the pump. While such proposals vary widely, the potential savings for motorists depend heavily on where they live.

State and local gasoline taxes differ dramatically across the country, ranging from less than 10 cents per gallon in Alaska to more than 70 cents per gallon in California. If those taxes were temporarily suspended, motorists would see immediate reductions in pump prices.

Based on current state gasoline tax rates compiled by the Tax Foundation and other fuel tax data sources, a driver purchasing 50 gallons of gasoline per month would save the following amounts if state and local gasoline taxes were suspended.

A closer look at the savings

The savings estimates assume motorists buy about 50 gallons of gasoline per month, roughly equal to two fill-ups for many drivers. Larger vehicles and commuters with long daily drives would save significantly more.

California motorists would benefit the most from a suspension, because the state has the nations highest combined gastaxes and fees. Illinois, Washington, Pennsylvania, and Indiana also rank near the top.

By contrast, drivers in Alaska, Hawaii, and New Mexico would see much smaller reductions because those states impose relatively low fuel taxes.

Supporters of gas tax holidays argue that suspending the taxes can provide immediate consumer relief during periods of high fuel prices or inflation. Critics counter that the tax revenue funds road repairs, bridge maintenance, and transportation projects, and they argue that oil companies or retailers do not always pass the full savings on to consumers.

Several states temporarily suspended or reduced gasoline taxes during the inflation surge that followed the pandemic, though many of those measures have since expired.

The federal government also imposes an 18.4-cent-per-gallon gasoline tax, but most proposals currently under discussion focus on state-level taxes.

Some brands will actually mail grads free stuff too

• Restaurants like Krispy Kreme, Golden Corral, and Chick-fil-A are offering grads free doughnuts, chicken sandwiches, desserts, and buffet meals.

• Many graduation freebies are local promotions, so checking restaurant apps, Facebook pages, or calling ahead can pay off.

• Some grads are also mailing graduation announcements to popular brands and getting free merch, coupons, or gift cards back.

Youve put in the hard work and made it to graduation day.

Congrats!

Now its time to go get some free food and even some free merchandise from many popular brands.

From free doughnuts, to free swag, to free buffet meals, here are some of the best grad deals happening right now.

Krispy Kreme

Only on May 21, grads wearing a cap, gown, or any Class of 2026 gear can score a free three-pack of original glazed doughnuts, with no purchase necessary.

May 21seems to be the day of consensus, but it appears some locations are running the promotion on different days in May, so calling ahead is smart before driving over.

Golden Corral

Some participating locations are offering graduates a free buffet meal and beverage when they show up in cap and gown on graduation night.

Keep in mind that the offer does vary by franchise, so its best to ask at your local Golden Corral what theyre offering. The offer is valid through June 30,which is generous.

Pro tip: Ive noticed that smaller-town Golden Corral locations often participate more aggressively in local graduation promotions than busy metro stores.

Pluckers Wing Bar

Graduates can get a free meal with the purchase of an adult entree on graduation day withproof of graduation. Accepted proof may include a diploma, graduation program, or a Student ID.

TGI Fridays

Graduates can receive a free appetizer or dessert with an entree purchase through mid-June witha student ID.

This is one of the longer-running graduation offers available right now.

Brio Italian Grille

If youre hosting a grad party, you might want to consider Brio as you can score a free tray of cannoli when placing a catering order of $100 or more. Just place your order online and use promo code GRAD2026 during checkout. The offer expires on June 30.

This works especially well for larger family gatherings where catering costs can get expensive quickly. You get a free dessert which is pretty sweet.

Buca di Beppo

Graduates dining-in at Buca di Beppo can get a free cannoli during graduation celebrations.

Catering customers spending at least $100 can also receive a half tray of cannoli for parties and family gatherings.

Chick-fil-A

Several locations around the country are offering graduates free chicken sandwiches, nuggets, or meals withgraduation gear or proof of graduation.

For example:

• One location is offering grads a free Chick-fil-A Chicken Sandwich for wearing cap and gown.
• Another offered a free meal for graduating seniors with proof of graduation.
• Some locations are giving away free nuggets instead.

Many local franchises are offering cool grad promotions, so your best bet is to check your local Chick-fil-as Facebook page, as most are promoting there.

Many brands will mail grads something, too

One trend getting a lot of attention right now is grads mailing graduation announcements to brands and companies. Surprisingly, many have actually responded with some pretty cool free stuff.

Graduates have reported hearing back from companies with things like gift cards, coupons, stickers, cool merch, free food vouchers, and even small gifts.

Here are the main brands that grads have been writing toand getting Congratulations Graduate! gifts:

• Lego:Small random Lego set and a congrats card.
• Chick-fil-A:Theyll often send you a plush cow, branded hat, and even a possible sweatshirt.
• Raising Cane's:Branded hat, congrats card, and even the occasional gift card.
• SunBum:Sunscreen, lip balm, stickers, and sometimes branded merchandise.
• Crumbl Cookies:Gift card, stickers, and a hand-written note.
• Takis:Congrats letter, bag of their new chips, and even some branded swag.

There is obviously no guarantee companies will respond, but many grads are trying it because it costs almost nothing besides postage and a little effort. Just do a quick Google search for their corporate address (or PR department), and mail them one of your graduation cards.

Pro tip: The grads getting the best responses usually include a short personal note instead of simply asking for free stuff. Its no surprise that funny or heartfelt messages tend to stand out more than generic graduation announcements.

Bond yields are surging for a variety of reasons

By Mark Huffman of ConsumerAffairs

• Rising federal debt, persistent inflation fears, and uncertainty about future Federal Reserve policy have pushed Treasury bond yields to their highest levels in years.

• Higher yields translate into more expensive mortgages, auto loans, credit cards, and business borrowing costs.

• Savers are finally earning meaningful returns again on CDs, money market funds, and Treasury securities.

For years, interest rates on savings accounts were next to nothing good for borrowers but bad for savers. But in recent weeks, there has been a sharp rise in U.S. Treasury bond yields, lifting borrowing costs for consumers while creating some of the best opportunities for savers in more than a decade.

The yield on the benchmark 10-year Treasury note a key indicator that influences everything from mortgage rates to corporate loans has climbed to levels not seen since before the 2008 financial crisis. Financial markets are signaling that investors now expect interest rates to stay higher for longer, even as inflation cools from its pandemic-era peak.

Treasury yields rise when investors demand higher returns to lend money to the federal government. Bond prices and yields move in opposite directions, meaning yields surge when investors sell bonds.

Growing debt load

Several forces are driving the increase.

One major factor is the federal governments growing debt load. Washington continues to run large budget deficits, requiring the Treasury Department to issue massive amounts of new debt. As supply increases, investors are demanding higher yields to absorb it.

Investors are also increasingly concerned about rising prices. While inflation has slowed significantly from the highs reached in 2022, investors worry it could remain above the Federal Reserves 2% target for years. Higher inflation erodes the value of future bond payments, so buyers want greater compensation.

In addition, the Federal Reserve has kept short-term interest rates elevated in its effort to control inflation. Even though many investors once expected rapid rate cuts, the economy has remained surprisingly resilient, with strong employment and steady consumer spending reducing pressure on the Fed to ease policy quickly.

Global factors

Global factors are contributing as well. Foreign governments and central banks have reduced some of their Treasury purchases, while geopolitical uncertainty has made investors more cautious about long-term debt holdings.

The consequences are being felt throughout the economy.

Mortgage rates have climbed because they tend to track the 10-year Treasury yield. Higher home financing costs have made affordability worse for many buyers, slowing home sales and keeping pressure on the housing market.

Auto loans and credit card rates have also risen. Consumers carrying balances are paying substantially more in interest than they did just a few years ago. Businesses face higher financing costs as well, which can discourage expansion and hiring.

For the federal government itself, higher yields mean rising interest expenses on the national debt. Interest payments are becoming one of the fastest-growing components of federal spending.

Good news for savers

But the news is not all negative.

Savers, who endured years of near-zero returns after the Great Recession, are benefiting from higher interest rates. Banks, online savings accounts, certificates of deposit, and money market funds are offering yields that would have seemed unusually generous just a few years ago.

Treasury securities themselves have become attractive to conservative investors seeking relatively safe returns. Short-term Treasury bills now often pay more than many traditional savings products.

Retirees and income-focused investors, long starved for yield, are also finding new opportunities in bonds and fixed-income investments.

Motorists in California would save the most

By Mark Huffman of ConsumerAffairs

• California drivers would save the most from a temporary suspension of state and local gasoline taxes about $35 on a 50-gallon monthly fuel purchase.

• Drivers in Alaska would see the smallest savings, at roughly $4.50 a month.

• The average U.S. driver would save about $16.50 a month if state and local gas taxes were suspended nationwide.

As gasoline prices remain a major household expense, some lawmakers have revived the idea of temporarily suspending state gasoline taxes to provide relief at the pump. While such proposals vary widely, the potential savings for motorists depend heavily on where they live.

State and local gasoline taxes differ dramatically across the country, ranging from less than 10 cents per gallon in Alaska to more than 70 cents per gallon in California. If those taxes were temporarily suspended, motorists would see immediate reductions in pump prices.

Based on current state gasoline tax rates compiled by the Tax Foundation and other fuel tax data sources, a driver purchasing 50 gallons of gasoline per month would save the following amounts if state and local gasoline taxes were suspended.

The savings estimates assume motorists buy about 50 gallons of gasoline per month, roughly equal to two fill-ups for many drivers. Larger vehicles and commuters with long daily drives would save significantly more.

California motorists would benefit the most from a suspension because the state has the nations highest combined gasoline taxes and fees. Illinois, Washington, Pennsylvania and Indiana also rank near the top.

By contrast, drivers in Alaska, Hawaii and New Mexico would see much smaller reductions because those states impose relatively low fuel taxes.

Supporters of gas tax holidays argue that suspending the taxes can provide immediate consumer relief during periods of high fuel prices or inflation. Critics counter that the tax revenue funds road repairs, bridge maintenance and transportation projects, and they argue that oil companies or retailers do not always pass the full savings on to consumers.

Several states temporarily suspended or reduced gasoline taxes during the inflation surge that followed the pandemic, though many of those measures have since expired.

The federal government also imposes an 18.4-cent-per-gallon gasoline tax, but most proposals currently under discussion focus on state-level taxes.

It works just like the Microsoft Tech Support Scam

By Mark Huffman of ConsumerAffairs

• Cybercriminals are exploiting Apples reputation with fake high alert security warnings designed to panic consumers into giving up passwords, payment information,or remote access to their devices.

• The scam often appears as pop-up alerts, text messages, or phone calls claiming an iPhone, iCloud, or Apple ID has been compromised.

• Experts say the best defense is to avoid clicking links in unsolicited alerts and verify any security issue directly through Apples official channels.

The Microsoft Tech Support Scam has cheated thousands of consumers out of millions of dollars over the years. Lately, scammers have switched brands, posing as another well-known tech company.

Consumers are reporting a surge in fraudulent Apple High Alert messages that attempt to trick people into believing their iPhone or iCloud account has been hacked. The scam uses fear and urgency to pressure victims into acting quickly, often leading them to hand over sensitive information or even allow criminals to take control of their devices.

Cybersecurity experts say the scheme has become increasingly sophisticated, with scammers mimicking Apple branding, logos, and language so convincingly that even experienced users can be fooled.

How the scam works

The scam typically begins with an alarming message claiming that suspicious activity has been detected on the victims Apple account. Consumers may receive:

• A pop-up warning while browsing the web

• A text message claiming an Apple ID has been locked

• An email about unauthorized purchases

• A phone call from someone pretending to be Apple Support

Many messages include phrases such as High Alert, Security Breach Detected, or Your iPhone Has Been Compromised.

The warning often urges consumers to click a link, call a phone number immediately, or download software to secure the device.

Once victims respond, scammers may attempt to:

• Steal Apple ID usernames and passwords

• Collect credit card or banking information

• Install remote-access software

• Gain access to photos, contacts,and stored passwords

• Demand payment for fake technical support services

In some cases, criminals convince consumers to purchase gift cards or transfer money to supposedly protect their accounts.

Why the scam is effective

Apple products are widely trusted, and many consumers worry about losing access to photos, financial accounts, and personal data stored on their devices. Scammers exploit that anxiety by creating a sense of emergency.

Fraudsters know that panic causes people to make quick decisions. If a message tells someone their account is under attack, they may be more likely to react before thinking critically.

The scam also succeeds because fake alerts can look remarkably authentic. Some fraudulent websites closely resemble Apples official support pages, complete with logos and professional-looking formatting.

Warning signs consumers should watch for

Security experts say there are several red flags that can help consumers identify the scam.

Apple does not:

• Send unsolicited pop-up alerts asking users to call support numbers

• Ask for passwords or verification codes through text messages

• Request payment via gift cards or wire transfers

• Pressure users to act immediately to avoid account deletion

Consumers should also be suspicious of:

• Poor grammar or unusual wording

• Unknown phone numbers or email addresses

• Links that do not lead to Apple.com

• Loud alarm sounds or flashing warnings in browser pop-ups

How to protect yourself

Do not click links, download software, or call numbers provided in unexpected messages claiming to be from Apple.

If concerned about account security, consumers should independently visit Apples official website or use the Settings app on their iPhone to check for notifications.

Two-factor authentication adds an extra layer of protection to Apple IDs and can help prevent unauthorized access.