U.S. execs sound a note of caution even as earnings outstrip estimates

CHICAGO/DETROIT, Jan 31 (Reuters) – The companies that produce goods at the heart of the U.S. consumer economy – SUVs, washing machines, heavy equipment, and hamburgers – kept rolling along at the end of 2022. But corporate executives on conference calls were guarded in their comments on Tuesday, noting solid demand while simultaneously pointing to… Read More »U.S. execs sound a note of caution even as earnings outstrip estimates

Even on $100k Plus, More Americans Are Living Paycheck-to-Paycheck

(Bloomberg) — The share of Americans who say they live paycheck-to-paycheck climbed last year, and most of the new arrivals in that category were among the country’s higher earners, a new study shows. Some 64% of US consumers — equivalent to 166 million people — were living paycheck-to-paycheck at the end of 2022, according to… Read More »Even on $100k Plus, More Americans Are Living Paycheck-to-Paycheck

Dow closes more than 350 points higher, S&P 500 caps best January in four years

Stocks rose on Tuesday as strong earnings and encouraging inflation data pushed the S&P 500 to its best January since 2019. The Dow Jones Industrial Average rose 368.95 points, or 1.09%, to 34,086.04. The S&P 500 gained 1.46% to 4,076.60. The Nasdaq Composite added 1.67% to 11,584.55, notching its best January since 2001. Traders assessed… Read More »Dow closes more than 350 points higher, S&P 500 caps best January in four years

WSJ: Whose Name Goes First On Your Joint Tax Return? Probably Not The Woman.

Wall Street Journal, Who Goes First on Your Joint Tax Return? Probably Not the Woman. The IRS doesn’t care, so why do most people put the man first on 1040? Even Kamala Harris goes second to the second gentleman. When calculating federal income taxes, it makes absolutely no difference which spouse is listed first on a… Read More »WSJ: Whose Name Goes First On Your Joint Tax Return? Probably Not The Woman.

Yellen Sees Low Inflation as More Likely Long-Term Challenge

US Treasury Secretary Janet Yellen said persistently weak inflation is likely to return as a long-term challenge for the economy and policymakers once pandemic-era distortions behind the recent surge subside and prices cool. “We’re just coming through an unusual and difficult period, but I do not think we’re in any way back to the ’80s… Read More »Yellen Sees Low Inflation as More Likely Long-Term Challenge

Sec. 163(j) business interest limitation: New rules for 2022

The business interest expense deductibility limitation provisions of Sec. 163(j) have taken on a broader scope since the passage of the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97. Under the TCJA, many businesses that rely on debt financing and historically received interest expense deductions associated with it must use a… Read More »Sec. 163(j) business interest limitation: New rules for 2022

With fraud on the rise, experts urge taxpayers to file their tax returns early

“It’s safe to assume your Social Security number is in the hands of someone you don’t want to have it,” one expert said. If you’ve been debating whether to file your taxes early this year, tax experts say there are now several reasons that might be a good idea. The biggest one is the rise… Read More »With fraud on the rise, experts urge taxpayers to file their tax returns early

Fed’s words in focus as markets bet rate hikes will soon end

(Reuters) – U.S. central bankers have unambiguously telegraphed this week’s policy decision: a quarter-of-a-percentage-point increase in their benchmark interest rate, the smallest since they kicked off their tightening cycle 10 months ago with one the same size. Less clear is whether they will continue to signal “ongoing increases” ahead for the policy rate as evidence… Read More »Fed’s words in focus as markets bet rate hikes will soon end

Highlights of SECURE Act 2.0 for Individuals

SECURE Act 2.0 includes numerous significant provisions affecting individual retirement savers. Following is a brief roundup of several key changes. SECURE Act 20 is finally here. The long-awaited upgrade to the initial legislation known as the Setting Every Community Up for Retirement Enhancement (SECURE) Act, passed in 2019, was signed into law on December 29,… Read More »Highlights of SECURE Act 2.0 for Individuals

Corporate Layoffs Spread Beyond High-Growth Tech Giants

Dow, IBM, and SAP say they will lay off thousands of workers as belt-tightening becomes the new business priority Dow Inc., DOW 1.46%increase; green up pointing triangle International Business Machines Corp. IBM -0.04%decrease; red down-pointing triangle and SAP SAP -0.78%decrease; red down-pointing triangle SE joined the string of companies outlining plans to cut thousands of jobs to prepare for a darkening economic outlook even as the nation’s labor market… Read More »Corporate Layoffs Spread Beyond High-Growth Tech Giants

Financial Wellness Is Self-Care: 3 Steps to Help Improve Yours

Many people resolve in the new year to get healthier. Taking charge of your financial wellness can help improve your physical health by lowering your anxiety about money issues. New Year’s resolutions about taking better care of your health, reducing stress, or just “prioritizing self-care” are all very popular and demonstrate a commitment to improving… Read More »Financial Wellness Is Self-Care: 3 Steps to Help Improve Yours

2023 Outlook: 4 Charts to Watch

CFOs should be aware of these data points on employment trends, CPI, and productivity going into 2023. CFOs are number-centric, data-driven thinkers. Through our Wednesday newsletters, we have brought you extensive content surrounding data, statistics, and the corresponding trends emerging from that data. Below are four charts that provide outlook data we at CFO believe financial leaders should… Read More »2023 Outlook: 4 Charts to Watch

Faced with a $1,000 emergency, most Americans say they wouldn’t have the money

A majority of Americans say they would struggle to pay for a $1,000 emergency expense, with a record share saying they would have to turn to credit cards to cover the cost, according to a new study released Wednesday. Only 4 in 10 Americans said they could cover an emergency of $1,000 or more using… Read More »Faced with a $1,000 emergency, most Americans say they wouldn’t have the money

Why Older Americans Regret Not Saving Early and Enough

Financial literacy and greater longevity awareness will help fix retirement planning gaps, according to a study that delved into multiple dimensions of undersaving. Many Americans head into their retirement years with little rigor in their planning, and then they find themselves nursing a bundle of regrets. Those regrets are about not saving more earlier in… Read More »Why Older Americans Regret Not Saving Early and Enough

Here’s how much money you need to earn to be in the top 1% in every U.S. state

Being considered rich isn’t just about how much money you make, it’s where you live, too. State by state, the incomes the top 1% of earners in the U.S. bring in vary by over a half million dollars, according to a new analysis of 2022 incomes by personal finance website SmartAsset. To be in the top 1% of… Read More »Here’s how much money you need to earn to be in the top 1% in every U.S. state

IRS opens a free portal to file information returns; new electronic option can reduce millions of paper Forms 1099 estimated to be filed by businesses in 2023

WASHINGTON — The Internal Revenue Service announced today that businesses can now file Form 1099 series information returns using a new online portal, available free from the IRS. Known as the Information Returns Intake System (IRIS), this free electronic filing service is secure, and accurate and requires no special software. Though available to any business… Read More »IRS opens a free portal to file information returns; new electronic option can reduce millions of paper Forms 1099 estimated to be filed by businesses in 2023

64% of CFOs Predict Net Profit Growth in 2023

CFOs are widely focused on reducing costs, spotting M&A opportunities, and restructuring supply chains, per Grant Thornton. The overall economy — and the issues it creates — are arguably the largest challenge for CFOs this year. Yet confidence to achieve growth is prevalent among financial executives, according to recent survey data from Grant Thornton. A majority of CFOs (64%)… Read More »64% of CFOs Predict Net Profit Growth in 2023

Oscar-nominated ‘Everything Everywhere All At Once’ features an IRS ordeal, but here’s what really happens in an audit, according to tax pros

KEY POINTS Few things are more frightening for everyday taxpayers than a possible IRS audit. But experts say tax exams may be different from what’s portrayed in the movies. In the Oscar-nominated film “Everything Everywhere All at Once,” a Chinese-American couple (played by Michelle Yeoh and Ke Huy Quan) with a failing laundromat face a tax audit,… Read More »Oscar-nominated ‘Everything Everywhere All At Once’ features an IRS ordeal, but here’s what really happens in an audit, according to tax pros

These common misconceptions can prevent you from achieving that perfect credit score

KEY POINTS Randy had an 850 credit score. According to FICO, the most popular scoring model, that’s as good as it gets. Still, a line on his credit report said he could lower his utilization rate, so he promptly paid off the remainder of his car loan with one $6,000 payment, and then his score… Read More »These common misconceptions can prevent you from achieving that perfect credit score

Am I Going to Be OK in Retirement? Yes, With Focus on 5 Key Areas

All it takes is protecting what you save, having an income plan, knowing your health care options, reducing your tax burden, and making an estate plan. Planning for retirement is actually pretty simple. Just answer the question in the headline above with a resounding “Yes!” and you’re good to go. The problem is most people… Read More »Am I Going to Be OK in Retirement? Yes, With Focus on 5 Key Areas

As Tax Season Starts, a Beleaguered I.R.S. Looks to Bolster Customer Service

The Biden administration is focusing on making the agency more responsive amid concerns that a funding increase will result in more audits. WASHINGTON — The Biden administration is aiming to significantly improve customer service at the Internal Revenue Service as the 2023 tax season begins on Monday, a pivotal moment for an agency at the… Read More »As Tax Season Starts, a Beleaguered I.R.S. Looks to Bolster Customer Service

Investors Aren’t Sure When to Dive Back Into US Stock Market

The pause in the stock market’s strong start to 2023 underscores the main question vexing much of Wall Street: When will it be safe to start buying again?  Yes, markets have grown increasingly confident that the slowdown in inflation will allow the Federal Reserve to soon end the cycle of aggressive interest-rate hikes that last… Read More »Investors Aren’t Sure When to Dive Back Into US Stock Market

Fed Governor Waller backs quarter-point interest rate hike at next meeting

KEY POINTS Federal Reserve Governor Christopher Waller said Friday he favors a quarter percentage point interest rate increase at the next meeting, as he waits for more evidence that inflation is heading in the right direction. Confirming market expectations, the central bank official said during a Council on Foreign Relations event in New York that the… Read More »Fed Governor Waller backs quarter-point interest rate hike at next meeting

A growing number of Americans face potentially crippling credit-card debt

Americans are piling on credit-card debt just as interest rates are reaching historic highs.  Multiple polls show American consumers sinking deeper into credit card debt. A new survey from Bankrate, the consumer finance company, found 46 percent of cardholders carrying credit-card balances from month to month, up from 39 percent a year ago.   A survey by NerdWallet,… Read More »A growing number of Americans face potentially crippling credit-card debt

3 Mistakes Business Owners Can’t Afford to Make When Planning Their Exit Strategy

Getting an early start on laying the groundwork for your exit is imperative. Empowering others to make decisions and delegating responsibilities also play key roles. If you’re a small-business owner approaching retirement, it’s important to start thinking about how to avoid common small-business exit strategy mistakes. As a business owner, you’re no stranger to hard… Read More »3 Mistakes Business Owners Can’t Afford to Make When Planning Their Exit Strategy

IRS turns to bank data to investigate tax criminals

The Internal Revenue Service’s Criminal Investigation unit is increasingly relying on information provided by financial institutions under the Bank Secrecy Act to uncover tax-related crimes such as money laundering and drug trafficking. IRS-CI chief Jim Lee presented statistics Wednesday showing that 15.8% of all investigations opened by his division in the fiscal year 2022 originated… Read More »IRS turns to bank data to investigate tax criminals

FTC Proposes Rule to Ban Noncompete Clauses, Which Hurt Workers and Harm Competition

Agency estimates new rule could increase workers’ earnings by nearly $300 billion per year The Federal Trade Commission proposed a new rule that would ban employers from imposing noncompetes on their workers, a widespread and often exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses. By stopping this practice, the agency estimates… Read More »FTC Proposes Rule to Ban Noncompete Clauses, Which Hurt Workers and Harm Competition

Companies race to work around choke points in world trade

Geopolitical risks are driving efforts to diversify but there are no quick solutions It is a year since New York Federal Reserve economists unveiled the Global Supply Chain Pressure Index. The barometer of port backlogs and freight costs, looking back over 25 years, showed that constraints on moving goods around the globe peaked in late… Read More »Companies race to work around choke points in world trade

Globalization Isn’t Dead. But It’s Changing.

Multinational companies still want cheap and efficient markets, but they also want safety. That’s why they’re rerouting the pathways of global trade and finance. The future looked bright to all parties when Alphabet Inc.’s Google joined with Facebook Inc. and a Hong Kong partner in 2016 to build an 8,000-mile-long undersea fiber-optic cable line connecting Los Angeles to Hong… Read More »Globalization Isn’t Dead. But It’s Changing.

Over 5 Million New US Startups Show Covid-Era Boom Has Legs

(Bloomberg) — More than 5 million businesses were created in the US last year, a sign that the entrepreneurship boom spawned by the pandemic may be long-lasting.  New business applications rose by 44% from 2019 to 2022, with the sharpest increases in Southern states, according to US Census Bureau figures released Tuesday. Bound at home… Read More »Over 5 Million New US Startups Show Covid-Era Boom Has Legs

The rise of the cash balance pension plan

Become familiar with this hybrid type of pension plan and its advantages for the right businesses. Many successful business owners and professionals begin their high-earning years belatedly because of lengthy educational requirements and initial careers as employees. Financial planning for this group may come late, but there are effective tools to accelerate the savings process,… Read More »The rise of the cash balance pension plan

Tax season 2023: Smaller refunds, higher audit rates, jarring capital-gains bills

The annual rite of filing a federal tax return is kicking into full swing, and this time, millions of Americans will need to adjust their expectations.  Stimulus checks are no more. Generous credits for children and for childcare and dependent expenses, mostly daycare, have shrunk to pre-pandemic levels. Steep losses from the stock market, which… Read More »Tax season 2023: Smaller refunds, higher audit rates, jarring capital-gains bills

Life expectancy can have a greater impact than even record-high inflation on how long your retirement savings will last

KEY POINTS Given today’s ongoing high inflation, many Americans worry they may not have put away enough money for retirement. They fear that sharp increases in food and energy prices and transportation and medical care costs could significantly affect their retirement savings. Yet there’s another important factor to consider: your life expectancy. A new report from… Read More »Life expectancy can have a greater impact than even record-high inflation on how long your retirement savings will last

Business Chiefs and Economists Brace for Recession as Davos Begins

(Bloomberg) — The World Economic Forum’s annual meeting began in Davos with corporate executives and economists warning a global recession is likely this year. Of 4,410 business leaders surveyed by PricewaterhouseCoopers LLP in October and November last year, 73% predicted global growth to decline over the coming 12 months. The reading was the worst since… Read More »Business Chiefs and Economists Brace for Recession as Davos Begins

IRS sets January 23 as the official start to the 2023 tax filing season; more help is available for taxpayers this year

WASHINGTON — The Internal Revenue Service today announced Monday, January 23, 2023, as the beginning of the nation’s 2023 tax season when the agency will begin accepting and processing 2022 tax year returns. More than 168 million individual tax returns are expected to be filed, with the vast majority of those coming before the April… Read More »IRS sets January 23 as the official start to the 2023 tax filing season; more help is available for taxpayers this year

Consumer prices fell 0.1% in December, in line with expectations from economists

KEY POINTS Inflation closed out 2022 in a modest retreat, with consumer prices in December posting their biggest monthly decline since early in the pandemic, the Labor Department reported Thursday. The consumer price index, which measures the cost of a broad basket of goods and services, fell 0.1% for the month, in line with the Dow Jones estimate.… Read More »Consumer prices fell 0.1% in December, in line with expectations from economists

When Social Security beneficiaries can expect the first checks of 2023 to include an 8.7% cost-of-living adjustment

KEY POINTS Starting this month, more than 65 million Social Security beneficiaries will receive benefit checks that include a record-breaking 8.7% cost-of-living adjustment. Social Security benefits are slated to increase by more than $140 per month on average, according to the Social Security Administration. The average retiree benefit will increase to $1,827, up from $1,681 in… Read More »When Social Security beneficiaries can expect the first checks of 2023 to include an 8.7% cost-of-living adjustment

National taxpayer advocate: IRS in better shape now than a year ago

The IRS will begin the 2023 filing season in much better shape than it was a year ago, with a greatly reduced backlog, a funding increase from Congress, and more workers, National Taxpayer Advocate Erin Collins said Wednesday in her annual report to Congress. The improvements will not be immediate for various reasons, including the… Read More »National taxpayer advocate: IRS in better shape now than a year ago

2023 Outlook: 4 Charts to Watch

CFOs should be aware of these data points on employment trends, CPI, and productivity going into 2023. FOs are number-centric, data-driven thinkers. Through our Wednesday newsletters, we have brought you extensive content surrounding data, statistics, and the corresponding trends emerging from that data. Below are four charts that provide outlook data we at CFO believe financial leaders should… Read More »2023 Outlook: 4 Charts to Watch

78% of Small Businesses Say TikTok Ads Have Boosted Profits

In addition, one in 10 small businesses went viral on TikTok organically, according to a new survey from Capterra. A new survey from Capterra, an online marketplace for the enterprise software industry, found that 78% of small businesses that run ads on TikTok have already realized a positive return on investment—the majority within just six months.… Read More »78% of Small Businesses Say TikTok Ads Have Boosted Profits

Bond Rally Gives Early Win to Wall Street’s 2023 Yield-Curve Bet

(Bloomberg) — Bond-market bulls are getting an early taste of what they expect to be a winning trade of 2023. On Friday, shorter-dated Treasuries led a broad market rally after the jobs report for December showed a slowdown in wage growth and a gauge of the service-sector economy unexpectedly shrank. The data stoked speculation that… Read More »Bond Rally Gives Early Win to Wall Street’s 2023 Yield-Curve Bet

Phishing attacks are increasing and getting more sophisticated. Here’s how to avoid them

KEY POINTS Phishing is on the rise, and anyone who uses email, text messaging, and other forms of communication is a potential victim.  These attacks, in which a cybercriminal sends a deceptive message that’s designed to fool a user into providing sensitive information such as credit card numbers or to launch malware on the user’s… Read More »Phishing attacks are increasing and getting more sophisticated. Here’s how to avoid them

How to balance retirement and emergency savings in a shaky economy

KEY POINTS It’s not easy to prioritize financial goals, especially when choosing between two essentials in an unsteady economy: saving for retirement or building your emergency fund.  While there are higher 401(k) contribution limits for 2023, you shouldn’t skip rainy day savings to max out your retirement plan, experts say.  Indeed, more than half of savers are prioritizing… Read More »How to balance retirement and emergency savings in a shaky economy

Optimism Makes Comeback on Wall Street With Soft Landing Eyed

(Bloomberg) — There wasn’t much sunshine in the stack of Wall Street forecasts that predicted 2023 would bring a global economic contraction and rough going for risk assets. But as January trading picks up steam, a small cadre of optimists is breaking away from consensus and betting a soft landing can deliver market gains. David… Read More »Optimism Makes Comeback on Wall Street With Soft Landing Eyed

3 After-Year-End Tax Strategies For Small Businesses

The 2022 tax year has ended and tax professionals everywhere are encouraging their small business clients to close their books and start thinking about their tax returns. In a perfect world, these clients have worked with their tax and accounting professionals throughout the year to optimize their small business taxes. Of course, we don’t live… Read More »3 After-Year-End Tax Strategies For Small Businesses

Credit card interest rates are heading to 20% on average — here’s the best way to pay down high-interest debt

KEY POINTS Credit card interest rates reached record highs last year and there is still more to come in 2023, according to Greg McBride, chief financial analyst at Bankrate.com. Credit card rates are now more than 19%, on average — an all-time high — after rising at the steepest annual pace ever, in step with the Federal Reserve’s interest rate hikes… Read More »Credit card interest rates are heading to 20% on average — here’s the best way to pay down high-interest debt

Remote Meetings Up 60% Since 2020: Weekly Stat

Despite return-to-office initiatives and hybrid work models, virtual meetings are still on the rise. Despite some organizations going as far as to tell employees to turn down meetings they find unbeneficial, executives and their employees seem to be in more virtual meetings than ever before. A recent analysis from the Harvard Business Review (HBR) that focused on remote work… Read More »Remote Meetings Up 60% Since 2020: Weekly Stat

Key tax and retirement provisions in the Secure 2.0 Act

The Consolidated Appropriations Act, 2023, P.L. 117-328, enacted on Dec. 29 included (as its Division T) the Secure 2.0 Act, which contains several retirement and tax provisions. The Secure 2.0 provisions mostly focus on expanding coverage, increasing retirement savings, and simplifying and clarifying retirement plan rules, but there are other changes included as well. Many tax… Read More »Key tax and retirement provisions in the Secure 2.0 Act

Fed minutes: Officials cited strong hiring to justify hikes

WASHINGTON (AP) — Federal Reserve officials suggested at their most recent meeting that a continuing streak of robust hiring could keep inflation elevated and was a key reason why they expected to raise interest rates this year more than they had previously forecast. In the minutes of their mid-December meeting released Wednesday, the officials also underscored that… Read More »Fed minutes: Officials cited strong hiring to justify hikes

Home price increases weakened sharply in November, posting the smallest annual gain in 2 years

KEY POINTS Home prices are falling into a deep winter chill, as higher mortgage rates push more buyers to the sidelines. Prices in November were still 8.6% higher than during the same month in 2021, but it was the first year-over-year reading in single digits in 21 months, according to CoreLogic. It is also the… Read More »Home price increases weakened sharply in November, posting the smallest annual gain in 2 years

MFJ taxpayers need to look out for this tax payment SNAFU

If the ‘secondary’ spouse makes a balance-due payment to the IRS, it may not get credited to their account. Taxpayers who file as married filing jointly and make a balance-due payment online may find their payment somehow does not get credited to their account. That’s if they fail to understand a certain unwritten rule, according… Read More »MFJ taxpayers need to look out for this tax payment SNAFU

Get ready for a ‘slowcession’ in 2023, Moody’s says

New York (CNN) — Many CEOs, investors, and consumers are worried about a recession in 2023. But Moody’s Analytics says the more likely scenario is a “slow session,” where growth grinds to a near halt but a full economic downturn is narrowly avoided. “Under almost any scenario, the economy is set to have a difficult 2023,” Moody’s Analytics chief… Read More »Get ready for a ‘slowcession’ in 2023, Moody’s says

These states are raising their minimum wages in 2023. Chart shows where workers can expect higher pay

KEY POINTS As the calendar turns to 2023, workers in more than half of all states have something to look forward to this year: a higher minimum wage. That’s occurring as the federal minimum wage stands pat at $7.25 per hour — the same rate since 2009. But many states and cities have put their… Read More »These states are raising their minimum wages in 2023. Chart shows where workers can expect higher pay

Tough Tax Law Test for Real Estate Professionals

Generally, investors in activities such as real estate in which they don’t materially participate can only take deductions up to the amount of their passive income for the year. The IRS often scrutinizes large deductions for rental real estate losses claimed by so-called “real estate professionals.” In a new case involving a couple that wholly-owned… Read More »Tough Tax Law Test for Real Estate Professionals

Retail sales jump 7.6% during the critical holiday shopping season

Retail sales jumped despite inflation hitting 7.1% in November Retail sales jumped 7.6% during the critical holiday season that runs from Nov. 1 to Christmas Eve, according to Mastercard SpendingPulse, which tracks sales across all payment types.  Americans chose to eat out during the holidays, with restaurant spending up 15.1% over the same time frame in 2021.… Read More »Retail sales jump 7.6% during the critical holiday shopping season

When to Expect 2023 IRS Income Tax Refunds – Estimated Date Chart for Tax Refunds

This chart shows an estimated timeline for when a taxpayer is likely to receive their refund, based on information we have now, and using projections based on previous years- and depending on when a person files their return. It’s still a bit too early to think about it, but in case you are wondering, here’s… Read More »When to Expect 2023 IRS Income Tax Refunds – Estimated Date Chart for Tax Refunds

Brace for Recession Next Year. But the Outlook Isn’t All Doom and Gloom.

The Fed will keep fighting inflation, and the unemployment rate will rise. But there are positive trends on the horizon. If 2022 was the year U.S. investors came around to the reality of entrenched inflation and a reactionary Federal Reserve, 2023 will be the year they learn to live with both. Neither is likely to… Read More »Brace for Recession Next Year. But the Outlook Isn’t All Doom and Gloom.

US economic growth revised up to 3.2% in the third quarter in a show of resiliency

Third-quarter GDP was previously reported to have increased by 2.9% The U.S. economy grew at a faster pace in the third quarter than previously reported as American consumers continued to spend even in the face of painfully high inflation and rising interest rates. Gross domestic product, the broadest measure of goods and services produced across the economy,… Read More »US economic growth revised up to 3.2% in the third quarter in a show of resiliency

How to Adjust Your Retirement Portfolio Against a 2023 Recession

Consider these seven retirement portfolio management strategies for a recession. The U.S. economy is getting a head start on a New Year’s hangover, with economists calling for hard times in 2023. According to the Conference Board, there’s a 96% chance the U.S. economy will slip into a recession in 2023. Additionally, a recent National Association… Read More »How to Adjust Your Retirement Portfolio Against a 2023 Recession

Corporate America isn’t afraid of the Fed’s monster rate hikes

The Federal Reserve’s super-sized interest rates are not scaring most companies into cutting back on spending, according to a survey released on Wednesday. About two-thirds of chief financial officers say the current level of interest rates has not impacted their spending plans, according to the CFO Survey conducted by Duke University and the Federal Reserve Banks of… Read More »Corporate America isn’t afraid of the Fed’s monster rate hikes

4 Ways to Prepare for a Personal Financial Crisis and Keep Goals on Track

An unexpected loss can send you spinning, but knowing where you stand and where to turn financially if something happens could ease some of the stress. As an adviser, I stress the importance of a well-thought-out, long-term plan to keep financial goals and objectives “on track,”, especially during a personal financial crisis. Even the best-laid… Read More »4 Ways to Prepare for a Personal Financial Crisis and Keep Goals on Track

Here’s how much pay Americans say they’d need to start a new job

The amount of money workers are demanding to switch jobs has been escalating — recently hitting a new eight-year high amid powerful inflation and the prospect of a recession. Asked about the minimum pay they would accept to switch to a new job, workers, on average, said they would need $73,700, the Federal Reserve Bank… Read More »Here’s how much pay Americans say they’d need to start a new job

Op-ed: Here are 5 questions to ask your financial advisor before the end of the year

KEY POINTS The end of the year is a time to give thanks and celebrate the holidays with our families. It’s also an opportunity to reevaluate the previous 12 months and ask your financial advisor some very productive questions. 1. What’s your investment decision process? We often judge the merits of a decision by the… Read More »Op-ed: Here are 5 questions to ask your financial advisor before the end of the year

FASB set to draft crypto asset disclosure standard

FASB made several tentative board decisions Wednesday related to its project on the disclosure of crypto assets, and the board agreed to create an exposure draft for a related Accounting Standards Update. At the AICPA & CIMA Conference on Current SEC and PCAOB Developments earlier in the week, FASB staff said that if the board decided to proceed with… Read More »FASB set to draft crypto asset disclosure standard

88% of employers offer a Roth 401(k) — almost twice as many as a decade ago. Here’s who stands to benefit

KEY POINTS The ranks of employers offering a Roth savings option to 401(k) investors continue to grow, giving more workers access to its unique financial benefits. About 88% of 401(k) plans allowed employees to save in a Roth account in 2021, up from 86% in 2020 and from 49% in 2011, according to the Plan… Read More »88% of employers offer a Roth 401(k) — almost twice as many as a decade ago. Here’s who stands to benefit

Here’s why salaries in the U.S. don’t keep up with inflation

Inflation in the United States hit a record high in June 2022. Consumer prices soared by 9.1% compared with a year prior — the largest annual increase since 1981. While wages are rising, they’re not keeping up with inflation. Wage growth has been consistent with an inflation rate of about 4.5%. Meanwhile, as of November, inflation was at 7.1%. Americans… Read More »Here’s why salaries in the U.S. don’t keep up with inflation

5 Top ERC Myths Businesses Need To Beware Of

In 2021, I published a piece about the top myths regarding the Employee Retention Credit (ERC) that was preventing business owners, charity managers, and Indian tribes from claiming this important tax incentive. Now, the misinformation has gone the other way, and businesses (as well as tax-exempt/charities and Native American tribes — but I will just use “business”… Read More »5 Top ERC Myths Businesses Need To Beware Of

Federal Reserve raises interest rates by 0.50 percentage points to curb inflation and predicts a higher peak

The Federal Reserve is going slower but aiming higher. The Fed raised its key short-term interest rate by half a percentage point Wednesday, dialing back from recent outsize hikes as it draws up an end game in its aggressive campaign to tame soaring inflation. But the central bank forecast another three-quarter point in rate increases next year, more… Read More »Federal Reserve raises interest rates by 0.50 percentage points to curb inflation and predicts a higher peak

‘It could be a blessing and a curse.’ Here are 3 unexpected financial pitfalls unmarried couples need to know

KEY POINTS SEATTLE — If you’re living together before marriage or committed long-term without plans to tie the knot, you’ll need to prepare for the future — or you may face challenges later, experts say. There are “rising rates of cohabitation,” with many couples skipping marriage because “they don’t see the benefit,” said Michelle Petrowski,… Read More »‘It could be a blessing and a curse.’ Here are 3 unexpected financial pitfalls unmarried couples need to know

Consumer prices rose less than expected in November, up 7.1% from a year ago

KEY POINTS Prices rose less than expected in November, the latest sign that the runaway inflation that has been gripping the economy is beginning to loosen up. The consumer price index, which measures a wide basket of goods and services, rose just 0.1% from the previous month, and increased 7.1% from a year ago, the… Read More »Consumer prices rose less than expected in November, up 7.1% from a year ago

Morningstar Raises “Safe” Retirement Withdrawal Rate to 3.8%

Morningstar researchers say higher interest rates and lower equity evaluations will make starting with a 3.8% withdrawal rate safe for a balanced saver over a 30-year time horizon. Morningstar’s annual model of how much a retiree with a balanced portfolio should withdraw over a 30-year time horizon increased to a starting point of 3.8% on the back… Read More »Morningstar Raises “Safe” Retirement Withdrawal Rate to 3.8%

As a record 8.7% Social Security cost-of-living increase starts in 2023, here’s what beneficiaries should look for in annual statements

KEY POINTS As inflation has kept prices high in 2022, Social Security beneficiaries may look forward to a record-high cost-of-living adjustment in 2023. “Your Social Security benefits will increase by 8.7% in 2023 because of a rise in the cost of living,” the Social Security Administration states in the annual statements it is currently sending to beneficiaries.… Read More »As a record 8.7% Social Security cost-of-living increase starts in 2023, here’s what beneficiaries should look for in annual statements

10 Key Things to Think About in Your New Year Financial Planning

2023 is set to be a tough year economically. Here’s how to get your financial and life plans in the best possible shape. There’s no escaping the fact 2023 is going to be challenging, but focusing on financial planning for the new year could help. From soaring inflation and rising interest rates to the ongoing effects of… Read More »10 Key Things to Think About in Your New Year Financial Planning

The average American may spend nearly $1,500 on the holidays

’Tis the season to be spending. Holiday retail sales are predicted to soar as high as $960 billion, according to the National Retail Federation. In 2021, overall holiday spending reached a record $889 billion.  Americans are expected to spend about $1,455 each this season, according to Deloitte’s latest study. That’s around the same as last year’s average… Read More »The average American may spend nearly $1,500 on the holidays

PCAOB report: Audit deficiencies increase in 2021

The percentage of audits found to have deficiencies during PCAOB inspections is expected to increase approximately 25% year-over-year, according to a board staff report released Thursday. The report said the PCAOB expects about 55% of 690 engagements reviewed for 2021 to have one or more Part I. A or Part I.B deficiencies, a notable increase from 44%… Read More »PCAOB report: Audit deficiencies increase in 2021

Taking required minimum distributions? How to reduce the sting of selling in a down market

KEY POINTS The deadline is fast approaching for mandatory retirement plan withdrawals, which may force some retirees to sell assets in a down market. But experts say there may be ways to reduce the negative effects. Required minimum distributions, known as RMDs, are yearly amounts that must be taken from certain retirement accounts, such as… Read More »Taking required minimum distributions? How to reduce the sting of selling in a down market

As supply chains unclog, consumers enjoy (tentative) relief

Back in January, 109 container ships waited off the California coast to unload cargo in Los Angeles and Long Beach, the nation’s two largest ports. Consumers, stuck at home amid the pandemic, had unleashed an avalanche of orders for goods that overwhelmed factories and ports. Importers were paying $20,000 to send a single container from… Read More »As supply chains unclog, consumers enjoy (tentative) relief

‘There is a slowdown happening’ – Wells Fargo, BofA CEOs point to cooling consumer amid Fed hikes

KEY POINTS American consumers are tapping the brakes on spending as the Federal Reserve’s interest rate increases reverberate throughout the economy, according to the CEOs of two of the largest American banks. After two years of pandemic-fueled, double-digit growth in Bank of America card volume, “the rate of growth is slowing,” CEO Brian Moynihan said Tuesday at a financial conference. While… Read More »‘There is a slowdown happening’ – Wells Fargo, BofA CEOs point to cooling consumer amid Fed hikes

Renewing a year-end tradition, companies are throwing holiday parties again to bring employees back together

KEY POINTS After two years of Covid-related cancellations and the desire of many companies to bring remote workers back together, the office party is staging a comeback. About 42% of companies say they are planning an in-person holiday party this year, up from just 13% a year ago, according to a survey by Challenger, Gray &… Read More »Renewing a year-end tradition, companies are throwing holiday parties again to bring employees back together

SPACs Collapse as $11 Billion of Deals Are Called Off Within an Hour

One of the SPAC industry’s most well-known sponsors and a would-be serial backer have seen deals worth $10.6 billion go up in smoke in less than an hour. Alec Gores, one of the most well-respected sponsors, said Monday that Gores Holdings VIII Inc. would not be merging with materials science tech company Footprint. Meanwhile, Concord… Read More »SPACs Collapse as $11 Billion of Deals Are Called Off Within an Hour

When it comes to IPOs, 2022 was nothing like 2021

Experts suspect the IPO market won’t recover until the second half of 2023, if then 2022 was not a good year for public listings. Initial public offerings (IPOs) on the New York Stock Exchange (NYSE) fell off a cliff this year. The number of IPOs dropped 93% from last year, NYSE president Lynn Martin said at the Reuters NEXT conference on Wednesday… Read More »When it comes to IPOs, 2022 was nothing like 2021

You can control your tax-reporting destiny.’ 4 key year-end tax moves

KEY POINTS With the holiday season in full swing, it can be easy to forget about the finer points of financial planning. While your tax return isn’t due until April, several key deadlines are approaching by year-end, experts say. “You can control your tax reporting destiny,” said certified financial planner Jim Guarino, a CPA, and… Read More »You can control your tax-reporting destiny.’ 4 key year-end tax moves

IRS Form 1099-K: Will You Get One From Venmo, PayPal, or Cash App?

A new $600 reporting threshold for IRS Form 1099-K involves payment networks like Venmo, PayPal, Amazon, Square, and Cash App. Did you get paid more than $600 in 2022 for goods or services through a third-party payment network like Venmo, PayPal, Amazon, or Square? Then, due to a changed tax reporting rule, you will most… Read More »IRS Form 1099-K: Will You Get One From Venmo, PayPal, or Cash App?

Fed to Weigh Higher Interest Rates Next Year While Slowing Rises This Month

Brisk wage growth may lead officials to consider raising the policy rate above 5% in 2023 while approving a 0.5-point increase in December Federal Reserve officials have signaled plans to raise their benchmark interest rate by 0.5 percentage points at their meeting next week, but elevated wage pressures could lead them to continue lifting it to higher… Read More »Fed to Weigh Higher Interest Rates Next Year While Slowing Rises This Month

The US economy adds 263,000 jobs in November, better than expected as hiring remains solid

November jobs report provides critical insight into the health of the US labor market U.S. job growth rose faster than expected in November, as the labor market remained resilient in the face of higher interest rates, scorching-hot inflation, and mounting recession fears. Employers added 263,000 jobs in November, the Labor Department said in its monthly payroll report released… Read More »The US economy adds 263,000 jobs in November, better than expected as hiring remains solid

U.S. consumer spending powers ahead in October; inflation cooling

U.S. consumer spending increased solidly in October, while inflation moderated, giving the economy a powerful boost at the start of the fourth quarter as it faces rising headwinds from the Federal Reserve’s aggressive monetary policy tightening. The labor market, the economy’s other pillar of support, continues to show resilience. The number of Americans filing new… Read More »U.S. consumer spending powers ahead in October; inflation cooling

U.S. Economic Growth Slowed This Fall, Fed’s Beige Book Says

Central bank’s business contacts saw greater economic uncertainty amid inflation and higher interest rates U.S. economic growth eased this fall with business activity in some parts of the country stalling or declining, the Federal Reserve said in a Wednesday report. Businesses also expressed greater uncertainty and increased pessimism for the U.S. economy as prices and interest… Read More »U.S. Economic Growth Slowed This Fall, Fed’s Beige Book Says

Fed Chief Jerome Powell Signals Slowdown in Rate Hikes: What the Experts Are Saying

Federal Reserve Chair Jerome Powell signaled that the central bank will slow its pace of rate hikes(opens in new tab) next month, but stressed that borrowing costs will remain high for the foreseeable future in a bid to halt the worst inflation(opens in new tab) in four decades. In a speech delivered at the Brookings Institution in Washington, D.C., on Wednesday,… Read More »Fed Chief Jerome Powell Signals Slowdown in Rate Hikes: What the Experts Are Saying

How to avoid mistakes with required minimum distributions from your retirement accounts

KEY POINTS You’ve got about a month left to make sure you get it right when it comes to mandatory withdrawals from retirement accounts. Required minimum distributions, or RMDs as they’re called, are annual amounts that must be withdrawn beginning in the year you reach age 72 — up from age 70½ before the Secure Act took effect… Read More »How to avoid mistakes with required minimum distributions from your retirement accounts

Watching Rates and Inventory as Home Sales Keep Falling

Nine Straight Months In January of this year, the number of single-family homes sold rose month-over-month, according to the National Association of Realtors®. Since then, the metric has fallen each month, coinciding with a rise in mortgage rates. As the average rate on a 30-year fixed mortgage hovers near 7%, many market observers contend prices… Read More »Watching Rates and Inventory as Home Sales Keep Falling

The great mismatch: Remote jobs are in demand, but positions are drying up

The job market — although still hot — is slowing, and many Americans who had been working from home are being called back into the office Lori Black has been firing off dozens of applications with one goal: to land a work-from-home job. But four months in, her search is starting to feel impossible. Positions… Read More »The great mismatch: Remote jobs are in demand, but positions are drying up

Fed Officials Say More Rate Hikes Coming; Williams Flags Path to Cuts

Federal Reserve policymakers stressed on Monday that they will raise borrowing costs further to curb inflation, with one key official saying that he sees interest rates heading somewhat higher than he had forecast just a couple of months ago. “Stronger demand for labor, stronger demand in the economy than I previously thought, and then somewhat… Read More »Fed Officials Say More Rate Hikes Coming; Williams Flags Path to Cuts

More Consumers Shopped With Apps Than at Malls on Black Friday

Inflation cast a long shadow over Black Friday 2022. Consumer prices rose 7.7% year over year in October, leaving millions of consumers wary as they entered the holiday shopping season. In total, 56 million United States consumers plan to opt out of holiday shopping entirely this year. For those consumers who are shopping this holiday season, however, Black Friday is… Read More »More Consumers Shopped With Apps Than at Malls on Black Friday

7 Wash Sale Facts To Know Before Selling Stock For Tax Loss Harvesting

Are you bullish about the stock markets in 2023? If so, you may be looking at year-end strategies to prepare for brighter investing horizons. For example, after the stock market declines of 2022, you may now hold securities—whether stocks, ETFs or mutual funds—that would generate capital losses if sold. Those losses could then be used… Read More »7 Wash Sale Facts To Know Before Selling Stock For Tax Loss Harvesting

New York becomes the first state to restrict cryptocurrency mining

New York Gov. Kathy Hochul (D) on Tuesday signed a law temporarily restricting cryptocurrency mining in the state over environmental concerns, making it the first state nationwide to implement such a move. The bill was delivered to the governor on Tuesday after the state legislature passed the measure in June, and The Associated Press reported that Hochul signed the measure. The… Read More »New York becomes the first state to restrict cryptocurrency mining

U.S. Audit Watchdog Looks to Strengthen Rules on Quality Controls

Audit firms would have to report once a year to the Public Company Accounting Oversight Board and their clients’ audit committees on how effective their systems are. The Public Company Accounting Oversight Board on Friday proposed tightening the rules that govern the controls audit firms use to assess the quality of their audits, a move… Read More »U.S. Audit Watchdog Looks to Strengthen Rules on Quality Controls

Bank of America sees bear rally fizzling out even as equity inflows surge

Investors flocked back into equities at the fastest pace in about eight months on signs of cooling inflation, but Bank of America Corp. strategists warn the rally will fizzle out due to earnings risks and staunchly hawkish central banks. Global stock funds saw inflows of US$22.9 billion in the week through Nov. 16, according to… Read More »Bank of America sees bear rally fizzling out even as equity inflows surge

JPMorgan Sees ‘Mild’ US Recession in 2023 on Fed’s Rate Hikes

JPMorgan Chase & Co. economists projected the US will enter a “mild” recession next year thanks to interest-rate hikes that could cost more than 1 million Americans their jobs, and the Federal Reserve will pivot to cutting borrowing costs in 2024. The Fed will probably raise its benchmark rate by 50 basis points in December… Read More »JPMorgan Sees ‘Mild’ US Recession in 2023 on Fed’s Rate Hikes

Serious cyberattacks on the rise, report shows

The number of organizations hit with cyberattacks is rising, according to a new report focused on US and UK businesses. About 75% of organizations have experienced a serious cyberattack in the past three years — up from 60% last year — according to the 2022 Cyber Security Insights Report conducted by S-RM, a global intelligence and cybersecurity consultancy. The report,… Read More »Serious cyberattacks on the rise, report shows

US retail sales rose 1.3% last month, a sign of resilience

Americans stepped up their spending at retailers, restaurants, and auto dealers last month, a sign of consumer resilience as the holiday shopping season begins amid painfully high inflation and rising interest rates. The government said Wednesday that retail sales rose 1.3% in October from September, up from a flat reading in September from August. The increase was led… Read More »US retail sales rose 1.3% last month, a sign of resilience

Employee retention credit: Navigating the suspension test

Establishing eligibility for the employee retention credit (ERC) by satisfying the business operations suspension test (suspension test) is similar to venturing into remote parts of the world: The payoff from a successful journey can be tremendous, but the road is arduous. Complexity adds uncertainty, guidance is lacking, and what appears to be an easy path… Read More »Employee retention credit: Navigating the suspension test

Taking Retirement Withdrawals in a Declining Market

Retirees often need to take cash out of retirement accounts to handle basic household expenses on a regular basis. If you have to make withdrawals in a declining market, there are strategies you can use to minimize the damage to your long-term financial plan. Consider these retirement withdrawal strategies for a down market: Should You Take Retirement… Read More »Taking Retirement Withdrawals in a Declining Market

Economists See US Inflation Running Even Hotter Through Next Year

Economists see US inflation running hotter through next year than they did a month ago and recession odds continue to mount against a backdrop of rising borrowing costs. Projections for the personal consumption expenditures price index — the Federal Reserve’s preferred inflation metric — were raised for each quarter of 2023. Still, price pressures are… Read More »Economists See US Inflation Running Even Hotter Through Next Year

Brainard says U.S. Fed should probably ‘soon’ slow pace of rate hikes

Federal Reserve Vice Chair Lael Brainard said the central bank should soon moderate the size of its interest-rate increases, signaling she favors slowing to a half-point hike as early as next month. “It will probably be appropriate soon to move to a slower pace of increases,” Brainard said Monday in a fireside-chat event at Bloomberg’s… Read More »Brainard says U.S. Fed should probably ‘soon’ slow pace of rate hikes

Fed boosts focus on liquidity, other risks as the economy weakens: Barr

Michael Barr, the Federal Reserve’s top regulatory official, said Monday the U.S. central bank is watching for any stresses to the financial system amid a weakening economy and signaled that stiffer oversight of cryptocurrency is in the offing. The Fed “will be heightening its focus on liquidity, credit, and interest-rate risks as supervised institutions manage… Read More »Fed boosts focus on liquidity, other risks as the economy weakens: Barr

Consumer prices rose 0.4% in October, less than expected, as inflation eases

KEY POINTS The consumer price index rose less than expected in October, an indication that while inflation is still a threat to the U.S. economy, pressures could be starting to cool. The index, a broad-based measure of goods and services costs, increased 0.4% for the month and 7.7% from a year ago, according to a Bureau… Read More »Consumer prices rose 0.4% in October, less than expected, as inflation eases

IRS still coping with millions of unprocessed tax returns

The Internal Revenue Service had 4.4 million unprocessed individual returns received this year as of Oct. 28, including the tax year 2021 returns and late-filed returns from the prior year, as IRS funding has become more of an issue during election season. The IRS reported in the latest update this week on the status of its mission-critical… Read More »IRS still coping with millions of unprocessed tax returns

US consumer inflation eased to 7.7% over the past 12 months

WASHINGTON (AP) — Price increases moderated in the United States last month in the latest sign that the inflation pressures that have gripped the nation might be easing as the economy slows. Consumer inflation reached 7.7% in October from a year earlier and 0.4% in September, the government said Thursday. The year-over-year increase, down from… Read More »US consumer inflation eased to 7.7% over the past 12 months

Op-ed: Here’s a year-end checklist to help you navigate some complicated financial issues

KEY POINTS The end of the year is one of the most important times for investors because there are so many decisions to make that impact their overall financial planning. This time around, the year’s end is marked with a lot of financial challenges, including inflation, market volatility, domestic political uncertainties, and global geopolitical risks… Read More »Op-ed: Here’s a year-end checklist to help you navigate some complicated financial issues

Fed warns of ‘low’ market liquidity in $24 trillion Treasury market, in latest financial stability report

The Federal Reserve on Friday confirmed what many investors were saying for some time: the $24 trillion Treasury market has been experiencing low levels of market liquidity in recent months. The central bank has been rapidly increasing interest rates since March as part of a fight to bring inflation down from a 40-year high. The… Read More »Fed warns of ‘low’ market liquidity in $24 trillion Treasury market, in latest financial stability report

Wall Street Hopes History Repeats With a Post-Election Comeback

The stock market’s short-term fate is riding on something that’s been a major boon for equities for more than 70 years: US midterm elections.  Rising interest rates, mounting recession risks, and the steepest inflation in four decades may cause a break with past trends. But the fourth quarter and year after mid-term elections have historically… Read More »Wall Street Hopes History Repeats With a Post-Election Comeback

401(k) Plans Now Let Workers Put Retirement Money Into Cryptocurrency

Though employers and regulators remain cautious, some plans are beginning to offer the option A small group of workers is finding something new in their 401(k) plan: the option to invest in cryptocurrency. Momentum has been built to allow workers to invest retirement savings in bitcoin, ether, and other cryptocurrencies, despite crypto’s sharp dives and warnings from regulators.… Read More »401(k) Plans Now Let Workers Put Retirement Money Into Cryptocurrency

Crypto Gloom Deepens on JPMorgan Team’s Venture Capital Warning

A retrenchment in venture capital funding for the digital-asset sector is the latest sign that a long slump in crypto markets may lie ahead. That’s the view of JPMorgan Chase & Co. strategists including Nikolaos Panigirtzoglou, who said Thursday such funding is running at the equivalent of about $10 billion a year, less than a… Read More »Crypto Gloom Deepens on JPMorgan Team’s Venture Capital Warning

IRS Criminal Investigation Had a 90% Conviction Rate in FY 2022

IRS-CI carried out more than 2,550 criminal investigations during its most recent fiscal year, according to a report. IRS Criminal Investigation initiated more than 2,550 criminal investigations, identified more than $31 billion from tax and financial crimes, and obtained a 90.6% conviction rate on cases accepted for the prosecution during the fiscal year 2022, according… Read More »IRS Criminal Investigation Had a 90% Conviction Rate in FY 2022

Newly released IRS Data Book numbers confirm the decline in audit rates

Along with frustrating backlogs, declining audit rates have been the topic of many accountant discussions regarding how IRS budget constraints have affected taxpayers. The latest IRS statistics confirm the declining audit numbers. On May 26, 2022, the IRS released its Data Book, 2021 (Publication 55-B). The Data Book, published annually since 1863, contains statistical tables describing a… Read More »Newly released IRS Data Book numbers confirm the decline in audit rates

5 Ways to Fight Inflation’s Impact on Your Retirement Plan

As high inflation persists, so does worry among retirees and workers who are within a few years of retirement. One survey found that inflation is America’s biggest issue, and worry about it is acute among those 50 and older. Another survey found four out of five Americans in that age bracket express unease about inflation in retirement, with… Read More »5 Ways to Fight Inflation’s Impact on Your Retirement Plan

Here’s what the Federal Reserve’s fourth 0.75 percentage point interest rate hike means for you

KEY POINTS The Federal Reserve raised the target federal funds rate by 0.75 percentage points for the fourth time in a row on Wednesday, marking an unprecedented pace of rate hikes. The U.S. central bank has raised the benchmark short-term borrowing rate a total of six times this year, including 75 basis point increases in June, July, and September,… Read More »Here’s what the Federal Reserve’s fourth 0.75 percentage point interest rate hike means for you

How AI And Machine Learning Quietly Went Mainstream

The bold, hype-laden pronouncements around AI and machine learning were hard to miss five or six years ago. Headlines about robo-accountants stealing jobs, algorithms that will cure disease, and autonomous vehicles were everywhere. Then, reality quickly caught up with the hype, and those promises eventually proved overly ambitious and many people lost the plot. Then, a plot twist. Seemingly all at… Read More »How AI And Machine Learning Quietly Went Mainstream

U.S. manufacturing activity slowest in nearly 2-1/2 years in October -ISM

U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in October while a measure of prices paid by businesses for inputs slid for a seventh straight month, as the Federal Reserve’s aggressive push to raise interest rates in order to quash inflation cools demand for goods. The Institute for Supply Management (ISM)… Read More »U.S. manufacturing activity slowest in nearly 2-1/2 years in October -ISM

Silicon Valley’s Share of Startup Deals Drops Below 20% for First Time

The decline comes as entrepreneurs and investors increasingly set up shop outside the tech mecca Silicon Valley accounted for less than 20% of deal-making nationally in the third quarter, marking the steady erosion of the region’s grip on startups and venture capital as companies increasingly spring up throughout the country. As recently as the mid-2000s,… Read More »Silicon Valley’s Share of Startup Deals Drops Below 20% for First Time

When to Expect 2023 IRS Income Tax Refunds – Estimated Date Chart for Tax Refunds

This chart shows an estimated timeline for when a taxpayer is likely to receive their refund, based on information we have now, and using projections based on previous years- and depending on when a person files their return. I know it’s way too” early to think about it, but in case you do, here’s our… Read More »When to Expect 2023 IRS Income Tax Refunds – Estimated Date Chart for Tax Refunds

The Frontier: Accountants are drowning in data

Accountants are truly living in the age of data, where sophisticated gathering techniques combine with computer-guided analytics to produce business insights for clients that translate into more revenue for the firm. It has transformed every level of the profession to the point where even sole practitioners operating from a storefront can nonetheless leverage massive amounts… Read More »The Frontier: Accountants are drowning in data

Myths about the ERC

One CPA said the employee retention tax credit is overlooked by many organizations that might be eligible to take advantage of the credit.   “This can be a complicated piece of legislation to discern whether an organization is eligible,” said David Cepek, CPA, client recovery agent at ERC Application.   Cepek will present a session in the… Read More »Myths about the ERC

Euro zone inflation hits record high of 10.7% as growth slows sharply

KEY POINTS Preliminary data on Monday from Europe’s statistics office showed headline inflation came in at an annual 10.7% this month. This represents the highest-ever monthly reading since the euro zone’s formation. The 19-member bloc has faced higher prices, particularly on energy and food, for the past 12 months. But the increases have been accentuated… Read More »Euro zone inflation hits record high of 10.7% as growth slows sharply

Yellen Lauds GDP Report as Evidence of ‘Resilient’ Economy

Treasury Secretary Janet Yellen said that while slower growth would help tame inflation, data released Thursday showed the US economy was resilient in the face of global challenges. A government report outlining a 2.6% annualized pace for expansion in the third quarter “clearly shows solid growth in the US, Yellen told reporters in Cleveland, where… Read More »Yellen Lauds GDP Report as Evidence of ‘Resilient’ Economy

Key inflation gauge for the Fed rose 0.5% in September, in line with expectations

KEY POINTS The core personal consumption expenditures price index in September increased 0.5% from the previous month and 5.1% from a year ago. Including food and energy, PCE inflation rose 0.3% for the month and 6.2% on a yearly basis. Personal spending rose 0.6%, more than expected amid the rise in prices. Compensation costs increased… Read More »Key inflation gauge for the Fed rose 0.5% in September, in line with expectations

FASB seeks input on proposed changes to accounting for joint ventures

FASB issued a proposed Accounting Standards Update (ASU) on Thursday that is intended to provide investors and other allocators of capital with more “decision-useful information” in a joint venture’s separate financial statements and to reduce diversity in practice in this area of financial reporting. The proposed ASU would apply to the formation of entities that meet the… Read More »FASB seeks input on proposed changes to accounting for joint ventures

Common Retirement Questions: When Should I Begin Taking Social Security?

Retirement Daily’s Robert Powell sits down with Dana Anspach from Sensible Money to tackle the ten most common questions in retirement. In today’s episode, Anspach discusses the next most common retirement question: When should I begin taking Social Security? Anspach says that people are more open to the idea of delaying Social Security benefits now… Read More »Common Retirement Questions: When Should I Begin Taking Social Security?

63% of Americans are living paycheck to paycheck — including nearly half of the six-figure earners

KEY POINTS With persistent inflation eroding wage gains, the number of Americans living paycheck to paycheck is near a historic high, according to a recent report. Almost half of those earning more than $100,000 say they are just getting by. As rising prices continue to outpace wage gains, families are finding less cushion in their… Read More »63% of Americans are living paycheck to paycheck — including nearly half of the six-figure earners

U.S. GDP accelerated at a 2.6% pace in Q3, better than expected as growth turns positive

KEY POINTS Gross domestic product rose 2.6% in the third quarter versus the estimate of 2.3%. A narrowing trade deficit and increases in consumer spending and government outlays boosted the number. A sharp pullback in housing subtracted from the number, part of a broader decline in private investment. Consumer spending decelerated, increasing at just a… Read More »U.S. GDP accelerated at a 2.6% pace in Q3, better than expected as growth turns positive

SEC OKs mutual fund, ETF shareholder report, and executive compensation clawback rules

The Securities and Exchange Commission on Wednesday adopted two final rule packages. The first rule, approved in a 5-0 vote, requires mutual funds and exchange-traded funds to provide investors with concise, tailored shareholder reports that highlight key information, such as fund expenses, performance, and portfolio holdings. Aimed at modernizing such shareholder reports, the final rules also… Read More »SEC OKs mutual fund, ETF shareholder report, and executive compensation clawback rules

SPAC Market Update

Lukewarm SPAC market’s fate is intertwined with IPOs It’s clear now that modern reverse mergers between SPACs and low-revenue, high-growth companies are faring about the same as the IPO market: not well. That’s largely due to the volatile public markets. PitchBook’s VC-backed IPO and deSPAC indexes have each posted losses of more than 45% YTD.… Read More »SPAC Market Update

Falling Medicare Costs and a Big Social Security COLA? Don’t Get Too Excited

What You Need to Know The 2023 COLA is 8.7%, and Medicare Part B premiums will fall by 3.1%. Long-term projections show Part B premiums will likely rise faster than that. Typical COLAs will probably be much smaller. The 2023 Social Security cost-of-living adjustment (COLA) announcement was welcome news for clients and advisors in the midst of… Read More »Falling Medicare Costs and a Big Social Security COLA? Don’t Get Too Excited

Americans now say they will need $1.25 million to retire comfortably, survey finds

KEY POINTS As everyday costs increase, Americans now say it will cost more to retire. Adults now say it will take $1.25 million to retire comfortably, a 20% increase from last year. The average expected retirement age has also increased to 64, up from 62.6 last year. Americans now expect they will need $1.25 million… Read More »Americans now say they will need $1.25 million to retire comfortably, survey finds

Inflation worries hurt U.S. consumer confidence; house prices decelerating

Summary Consumer confidence index falls 5.3 points to 102.5 Labor market differential drops to 32.5 from 38.1 House price gains slow further in August U.S. consumer confidence ebbed in October after two straight monthly increases amid rising concerns about inflation and a possible recession next year, but households remained keen to purchase big-ticket items like… Read More »Inflation worries hurt U.S. consumer confidence; house prices decelerating

JPMorgan chief says geopolitics more concerning than a recession

JPMorgan Chase CEO Jamie Dimon said on Tuesday that he is more concerned about today’s geopolitics than a looming recession, following remarks warning that an economic downturn is likely in the next year. “There’s a lot of stuff on the horizon which is bad and could … put the United States in a recession,” Dimon said on… Read More »JPMorgan chief says geopolitics more concerning than a recession

Fed’s Bullard, and Evans, shows two paths to the same policy rate

Charles Evans and James Bullard are the U.S. Federal Reserve’s longest-serving monetary policymakers, a pair of PhD economists who’ve been at the center of central bank debates through two acute crises and often approached the job from markedly different perspectives. Where Evans, president of the Chicago Fed, calls himself a “hopeless romantic” about the longstanding… Read More »Fed’s Bullard, and Evans, shows two paths to the same policy rate

When is a Roth conversion beneficial?

This article focuses on some of the considerations that investors should assess when determining whether to convert a traditional IRA to a Roth IRA. These include not only expected future income tax rates but also the account owner’s particular tax situation in the year in question, anticipated required minimum distributions (RMDs), charitable contribution intentions, and… Read More »When is a Roth conversion beneficial?

Global Economic Growth Is Weighed Down by Inflation, Rising Interest Rates

Fresh economic data pointed to a slowdown in U.S. and global growth, as higher prices and interest rates weigh on consumer demand, Europe enters a critical phase of its economic conflict with Russia, and China faces headwinds. U.S. and European business activity fell in October, according to new surveys released Monday. A sharp slowdown in services activity, the… Read More »Global Economic Growth Is Weighed Down by Inflation, Rising Interest Rates

BofA Economist: ‘I Don’t See How We Avoid a Recession’

Inflation won’t be cooling off until 2023, and there is likely going to be a recession next year, according to economic experts from Bank of America and Wells Fargo, who spoke at the Securities Industry and Financial Markets Association (SIFMA) Annual Meeting in New York on Monday. “We’ve had a recession in our forecast for… Read More »BofA Economist: ‘I Don’t See How We Avoid a Recession’

Early Earnings Reports Worry Investors Already Battered by Stock Selloff

Hopeful economic signs compete with challenges to profits including inflation, rising rates, and a strong dollar Early results from the third-quarter earnings season haven’t provided much comfort to jittery investors. While some corporate leaders noted glimmers of hope for consumers and the economy, many have reported a host of challenges to profits, including persistent inflation, rising interest rates, and… Read More »Early Earnings Reports Worry Investors Already Battered by Stock Selloff

Confessions of a personal finance reporter (Part Two): 3 more of my worst money mistakes

KEY POINTS I’ve made many money mistakes that I’m not proud of but that may serve as an object lesson for others looking to better manage their personal finances. I have no idea how much my less-than-ideal decisions have cost me, but I’m sure I’d have more money by now if I’d not made those… Read More »Confessions of a personal finance reporter (Part Two): 3 more of my worst money mistakes

Retirement account inflation adjustments issued for 2023

The IRS on Friday announced the 2023 inflation-adjusted dollar-amount ceilings and thresholds for a wide range of qualified retirement plans and accounts, including traditional individual retirement arrangements (IRAs) and Roth IRAs (Notice 2022-55). The notice also provides the 2023 limits on elective deferrals for plans under Sec. 401(k) and Sec. 403(b) and most plans under… Read More »Retirement account inflation adjustments issued for 2023

U.S. existing home sales slide again in September; jobless claims fall

Sales of existing U.S. homes slid for an eighth straight month in September and will likely fall further in the months ahead as the housing market continues to stand out as the economic sector absorbs the hardest hit from the Federal Reserve’s aggressive interest rate hikes. The broadly weak report from the National Association of… Read More »U.S. existing home sales slide again in September; jobless claims fall

Fed’s Harker Expects Rates to Be ‘Well Above’ 4% by Year End

Federal Reserve Bank of Philadelphia President Patrick Harker said officials are likely to raise interest rates to “well above” 4% this year and hold them at restrictive levels to combat inflation while leaving the door open to doing more if needed.  “We are going to keep raising rates for a while,” Harker said Thursday in… Read More »Fed’s Harker Expects Rates to Be ‘Well Above’ 4% by Year End

IRS criminal investigators probe COVID fraud

The Internal Revenue Service’s Criminal Investigation unit has been working with the Justice Department to uncover billions of dollars in fraud related to pandemic relief programs. The division, also known as IRS-CI, said Thursday it has conducted 840 tax and money-laundering investigations tied to COVID-19 fraud, totaling more than $3.1 billion, through Sept. 30. The… Read More »IRS criminal investigators probe COVID fraud

Sustainability and super apps top Gartner’s Top 10 2023 Trends List

Other trends including the metaverse, adaptive AI, and wireless value realization will be coming into vogue in 2023. Because financial concerns are once again top of mind for most companies today, Gartner’s Top 10 Strategic Technology Trends for 2023 are focused on the technologies that help them increase resilience, optimize operations, scale, and engineer new forms of… Read More »Sustainability and super apps top Gartner’s Top 10 2023 Trends List

Consumer spending was flat in September and below expectations as inflation takes its toll

KEY POINTS Retail and food services sales in total were little changed in September against the estimate for a 0.3% gain. Excluding autos, sales rose 0.1%, vs. the estimate for spending to be unchanged. The numbers are not adjusted for inflation, indicating that consumer spending slowed. Consumer spending was flat in September as prices moved… Read More »Consumer spending was flat in September and below expectations as inflation takes its toll

IRS Sets Higher 2023 Tax Brackets, Standard Deductions, And Other Inflation Adjustments

The Internal Revenue Service has released dozens of inflation adjustments affecting individual income tax brackets, deductions, and credits for 2023, and—no surprise—today’s four-decade-high inflation has translated into some big hikes. Consider the standard deduction, now claimed (instead of itemized deductions) by more than 85% of taxpayers. For a married couple filing a joint tax return, that… Read More »IRS Sets Higher 2023 Tax Brackets, Standard Deductions, And Other Inflation Adjustments

Forecast for U.S. recession within year hits 100%

A U.S. recession is effectively certain in the next 12 months in new Bloomberg Economics model projections, a blow to President Joe Biden’s economic messaging ahead of the November midterms. The latest recession probability models by Bloomberg economists Anna Wong and Eliza Winger forecast a higher recession probability across all timeframes, with the 12-month estimate… Read More »Forecast for U.S. recession within year hits 100%

Delaying big purchases, reducing debt: 76% of adults are making lifestyle changes to prepare for a potential recession

KEY POINTS Eighty-four percent of adults say they are concerned that a recession is on the horizon, a new survey shows. Additionally, 74% said their concerns about inflation have increased. If you are worried about job loss during a recession, be sure to make arrangements to have sufficient emergency savings, experts say. A majority of… Read More »Delaying big purchases, reducing debt: 76% of adults are making lifestyle changes to prepare for a potential recession

Economists Now Expect a Recession, Job Losses by Next Year

The US will enter a recession in the coming 12 months as the Federal Reserve battles to bring down persistently high inflation, the economy contracts, and employers cut jobs in response, according to The Wall Street Journal’s latest survey of economists. On average, economists put the probability of a recession in the next 12 months… Read More »Economists Now Expect a Recession, Job Losses by Next Year

The global economy is in chaos. Nobody’s coming to the rescue.

The global turmoil provides the latest test of U.S. influence over international affairs after the Biden administration sought to re-engage with the world in the post-Trump era. America is driving the West’s response to the war in Ukraine. But U.S. officials are struggling to project a global response to a worldwide economic slowdown. A sense… Read More »The global economy is in chaos. Nobody’s coming to the rescue.

After two years of shipping snarls, things are starting to turn around

KEY POINTS After two years of port congestions and container shortages, disruptions are now easing as Chinese exports slow in light of waning demand from Western economies and softer global economic conditions, logistics data shows. “The retailers and the bigger buyers or shippers are more cautious about the outlook on demand and are ordering less,”… Read More »After two years of shipping snarls, things are starting to turn around

You Can Apply Now for Biden’s Student Loan Debt Forgiveness

The Biden administration officially launched the 2022 student loan debt forgiveness application and millions have already applied for relief. President Biden on Monday announced the official launch of the online student loan debt relief application after millions of borrowers applied for Biden’s student loan forgiveness through a beta version of the site that was released… Read More »You Can Apply Now for Biden’s Student Loan Debt Forgiveness

Should I take Social Security at 62 or wait? Here are 3 smart reasons to start getting paid ASAP

Americans nearing retirement know the advice all too well: When it comes to Social Security, good things come to those who wait. And those who can’t wait? Their benefits get slashed. Those reduced benefits can add up. If you take Social Security before full retirement age, you should expect a 30% reduction in monthly benefits,… Read More »Should I take Social Security at 62 or wait? Here are 3 smart reasons to start getting paid ASAP

Fed’s Bullard says boost to dollar from interest rate hikes may ease

The Federal Reserve’s rapid interest rate increases have contributed to the strength of the dollar against other currencies, but that may ease once the U.S. central bank reaches the point of pausing the hikes, St. Louis Fed President James Bullard said on Saturday. Fed policy “has produced a stronger currency,” Bullard said at a monetary… Read More »Fed’s Bullard says boost to dollar from interest rate hikes may ease

The number of baby boomers and Generation X who plan to work past age 70—or forever—is stunning

‘Retirement risks faced by workers are greater than ever before’ Almost half of baby boomers and more than one-third of Generation X expect to work past age 70 or do not plan to retire at all, highlighting the need for backup plans in case life’s unexpected events get in the way of such goals. According… Read More »The number of baby boomers and Generation X who plan to work past age 70—or forever—is stunning

Delaying big purchases, reducing debt: 76% of adults are making lifestyle changes to prepare for a potential recession

KEY POINTS Eighty-four percent of adults say they are concerned that a recession is on the horizon, a new survey shows. Additionally, 74% said their concerns about inflation have increased. If you are worried about job loss during a recession, be sure to make arrangements to have sufficient emergency savings, experts say. A majority of… Read More »Delaying big purchases, reducing debt: 76% of adults are making lifestyle changes to prepare for a potential recession

Worsening inflation will pressure Fed to keep raising rates

Inflation in the United States accelerated in September, with the cost of housing and other necessities intensifying pressure on households, wiping out pay gains and ensuring that the Federal Reserve will keep raising interest rates aggressively. Consumer prices, excluding volatile food and energy costs, jumped 6.6% in September from a year ago — the fastest such… Read More »Worsening inflation will pressure Fed to keep raising rates

JPMorgan CEO warns higher inflation could push U.S. rates above 4.5%

JPMorgan Chase & Co (JPM.N) Chief Executive Officer Jamie Dimon on Thursday warned that persistent and elevated inflation could spur interest rates to rise higher than 4.5%, as he cautioned about the possibility of a looming recession. Consumers are in strong financial health, and are still spending robustly, he told attendees at the Institute of International Finance… Read More »JPMorgan CEO warns higher inflation could push U.S. rates above 4.5%

Social Security cost-of-living adjustment will be 8.7% in 2023, the highest increase in 40 years

KEY POINTS Social Security beneficiaries can expect an 8.7% boost to benefits in 2023, the Social Security Administration announced. The increase tops the 5.9% cost-of-living adjustment for 2022, which at the time was the highest in four decades. Amid record-high inflation, Social Security beneficiaries will get an 8.7% increase to their benefits in 2023, the… Read More »Social Security cost-of-living adjustment will be 8.7% in 2023, the highest increase in 40 years

‘This is serious’: JPMorgan’s Jamie Dimon warns U.S. likely to tip into recession in 6 to 9 months

KEY POINTS JPMorgan Chase CEO Jamie Dimon said the U.S. economy was “actually still doing well” at present and consumers were likely to be in better shape compared to the 2008 global financial crisis when the world tips into recession. “But you can’t talk about the economy without talking about stuff in the future — and this… Read More »‘This is serious’: JPMorgan’s Jamie Dimon warns U.S. likely to tip into recession in 6 to 9 months

PREVIEW U.S. banks’ Q3 profits set to shrink on economic risks, deal slump

The biggest U.S. banks are expected to report weaker third-quarter profits as the economy slowed and volatile markets put the brakes on dealmaking. Four of the nation’s largest lenders – JPMorgan Chase & Co (JPM.N), Wells Fargo & Co (WFC.N), Citigroup Inc (C.N), and Morgan Stanley (MS.N) – will report third-quarter earnings on Friday of next week. The results are expected… Read More »PREVIEW U.S. banks’ Q3 profits set to shrink on economic risks, deal slump

Two Fed Officials Make Case for Caution With Future Interest Rate Raises

Two Federal Reserve officials began laying out a case for exercising caution in raising interest rates after policymakers last month telegraphed plans to continue lifting rates at their fastest pace in decades to reduce inflation that has reached 40-year highs. Fed Vice Chairwoman Lael Brainard noted how previous rate increases, together with anticipated further rate increases,… Read More »Two Fed Officials Make Case for Caution With Future Interest Rate Raises

S&P 500 closes lower, notches 5-day losing streak ahead of key inflation report

U.S. stocks fell Tuesday, reversing gains from earlier in the day as investors looked ahead to key inflation data out later in the week that will give the Federal Reserve updated information on the state of the U.S. economy. The S&P 500 slipped 0.65% to close at 3,588.84 after rebounding from a multiyear low earlier… Read More »S&P 500 closes lower, notches 5-day losing streak ahead of key inflation report

Bridgewater’s Dalio warns of a ‘perfect storm’ for economy

Ray Dalio, the billionaire investor who built Bridgewater Associates into one of the world’s biggest hedge funds, said a “perfect storm” is forming that will spread economic pain as the U.S. Federal Reserve raises interest rates. Dalio, who handed over control of the $150 billion firm to a new generation of investors this month, said… Read More »Bridgewater’s Dalio warns of a ‘perfect storm’ for economy

Dallas Fed says inflation surge badly eroding many American’s wage gains

Americans’ wages are losing ground to inflation at a steep rate, a report on Tuesday from the Federal Reserve Bank of Dallas said, a finding that offers some support for the central bank’s super-charged campaign to lower price pressures. “Despite the stronger wage growth due to the tightness of the labor market, a majority of… Read More »Dallas Fed says inflation surge badly eroding many American’s wage gains

FASB proposes improvements to segment reporting

FASB issued a proposed Accounting Standards Update (ASU) on Thursday that is intended to improve disclosures about a public entity’s reportable segments and address requests from investors and other allocators of capital for more detailed information about a reportable segment’s expenses. FASB Chair Richard R. Jones said the proposed ASU, Segment Reporting (Topic 280): Improvements to… Read More »FASB proposes improvements to segment reporting

Making salaries public: More employers are sharing how much jobs pay. Will it close the wage gap?

With new laws from Colorado to Rhode Island, employers are under growing pressure to publicly share how much a job pays. Last week, California became the largest state to join the push for salary transparency when Gov. Gavin Newsom signed the measure, which takes effect next year. Though it was not the first to require employers to post pay ranges for open… Read More »Making salaries public: More employers are sharing how much jobs pay. Will it close the wage gap?

People Still Quit Jobs, but More Office Workers Are Staying Put

American workers quit 4.2 million jobs in August, but one type of employee appears to be getting cold feet about switching employers or quitting to take a career timeout: office workers. People with jobs classified as professional and business services, including those who work in occupations such as accounting, engineering, office administration, legal services, and… Read More »People Still Quit Jobs, but More Office Workers Are Staying Put

Unemployment rate falls to 3.5% in September, payrolls rise by 263,000 as job market stays strong auto Draft

KEY POINTS Nonfarm payrolls increased by 263,000 for the month, short of the Dow Jones estimate of 275,000. The unemployment rate was 3.5%, down 0.2 percentage points as the labor force participation rate edged lower. Average hourly earnings rose 5% from a year ago, slightly below the estimate. Leisure and hospitality, health care, and business… Read More »Unemployment rate falls to 3.5% in September, payrolls rise by 263,000 as job market stays strong auto Draft

WTO predicts trade growth to slow next year amid crises

The World Trade Organization is predicting global trade volumes will grow a lackluster 1% next year as crises and challenges weigh on markets, including high energy prices, rising interest rates, and uncertainties about Chinese manufacturing output amid the lingering COVID-19 pandemic. The Geneva-based trade body said Wednesday that the amount of goods shipped between countries is expected to… Read More »WTO predicts trade growth to slow next year amid crises

OPEC+ was rebuked by the U.S. after cutting output to keep prices high

OPEC+ agreed to make a large production cut to keep oil prices high, drawing an immediate rebuke from the U.S.  The move was defended by ministers from the producer’s group as necessary to protect the oil industry and their own economies from the risk of a global slowdown. The White House slammed the decision and… Read More »OPEC+ was rebuked by the U.S. after cutting output to keep prices high

Fed’s Bostic Favors Raising Rates as High as 4.5% by Year-End

Federal Reserve Bank of Atlanta President Raphael Bostic said he favors lifting interest rates to between 4% and 4.5% by the end of this year and then keeping the tightening in place to reduce inflation that remains near a four-decade high. “I would like to reach a point where policy is moderately restrictive –between 4… Read More »Fed’s Bostic Favors Raising Rates as High as 4.5% by Year-End

CEOs are preparing for a recession, and they don’t think it will be short

Major CEOs aren’t buying the notion that the US economy could have a soft landing following a series of historically large interest rate hikes by the Federal Reserve to fight inflation. According to a survey of 400 leaders of large US companies by consulting firm KPMG, a whopping 91% are predicting a recession in the next 12 months. What’s more,… Read More »CEOs are preparing for a recession, and they don’t think it will be short

‘Excessive’ policy choices could trigger an economic downturn even worse than the 2008 recession, UN agency says

Governments around the world are determined to bring down inflation whatever the cost, but a growing chorus of voices is pointing out that aggressive monetary policies could have some serious and long-lasting consequences on the world economy. Central banks in the U.S., Europe and the U.K. have pursued relentless monetary tightening policies this year to reduce domestic inflation, but transnational institutions including… Read More »‘Excessive’ policy choices could trigger an economic downturn even worse than the 2008 recession, UN agency says

Nearly 50% of CEOs Looking at Job Cuts, and 39% have Frozen Hiring: KPMG Survey

The KPMG 2022 CEO Outlook asked more than 1,300 CEOs of the world’s largest businesses about their strategies and outlook. The survey included leaders from eleven key markets Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the UK, and the US. A report by KPMG has shown that 39 percent of CEOs have already… Read More »Nearly 50% of CEOs Looking at Job Cuts, and 39% have Frozen Hiring: KPMG Survey

Hurricane Ian Victims Granted Tax Extensions

Hurricane Ian victims throughout Florida now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments. Hurricane Ian victims throughout Florida now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced. The IRS… Read More »Hurricane Ian Victims Granted Tax Extensions

Global shipping costs are plunging as the world economy slows

THE COST OF shipping containers is in retreat around the world, as the shortages and bottlenecks that plagued maritime trade throughout much of the pandemic subside rapidly (see chart). The drop could help to reduce stubbornly high inflation and offer a signal of slowing demand in the global economy. The Drewry World Container Index, which measures the price of a… Read More »Global shipping costs are plunging as the world economy slows

US economy drops at a 0.6% annual rate from April through June

Battered by surging consumer prices and rising interest rates, the U.S. economy shrank at a 0.6% annual rate from April through June, the government announced Thursday, unchanged from its previous second-quarter estimate. It marked the second consecutive quarter of economic contraction, one informal rule of thumb for a recession. Most economists, citing a strong and… Read More »US economy drops at a 0.6% annual rate from April through June

New U.S. National Security Rule Requires Firms to Disclose Key Owners

Millions of companies in the U.S. will have to report primary ownership, in an effort to close anti-money-laundering loopholes Millions of companies in the U.S. will have to disclose their ownership to the federal government under a new anti-money-laundering rule issued by the Biden administration on Thursday. The Treasury Department’s action is aimed at closing… Read More »New U.S. National Security Rule Requires Firms to Disclose Key Owners

Tax Collections Are Up 23% As Inflation, Wages, And Profits Rise

Tax collections this year in the U.S. are up 23% compared to last year, according to a new study by the Tax Foundation citing Congressional Budget Office data. Inflation seems to be everywhere. The Tax Foundation’s report on surging IRS collections might make you scratch your head and wonder what could happen with even more resources devoted… Read More »Tax Collections Are Up 23% As Inflation, Wages, And Profits Rise

CFOs See Higher Costs and Lack of Skilled Labor; Reduce Outlook for Growth

Financial decision-makers lowered their expectations for real growth in gross domestic product during the third quarter amid concerns over inflation and trouble finding skilled labor, according to the results of The CFO Survey, a collaboration of Duke University’s Fuqua School of Business and the Federal Reserve Banks of Richmond and Atlanta. At the same time,… Read More »CFOs See Higher Costs and Lack of Skilled Labor; Reduce Outlook for Growth

Fed’s Kashkari Says Rate-Hike Pace ‘Appropriate’ to Cool Prices

Minneapolis Fed chief says need to hike until inflation falls Get to policy that restraining economy and then be ‘patient’ Federal Reserve Bank of Minneapolis President Neel Kashkari said the US central bank is committed to restoring price stability and its current pace of interest-rate increases is appropriate. “We are moving very aggressively,” he said… Read More »Fed’s Kashkari Says Rate-Hike Pace ‘Appropriate’ to Cool Prices

Supply Chain Pressures Keep Inventories High in Q2

Inconsistent lead times and shipping delays force companies to maintain inventory buffers. Efficient handling of working capital frees up cash that can be used to replace the forms of capital getting more expensive as interest rates climb. The Hackett Group’s Working Capital Survey, updated for the second quarter of 2022, showed the 1,000 companies studied… Read More »Supply Chain Pressures Keep Inventories High in Q2

Crypto M&A Slows As Its Own Type Of Winter Sets In

The special per diem rates by which taxpayers may substantiate ordinary and necessary business expenses of travel away from home will be slightly higher starting Oct. 1, the IRS provided Monday in Notice 2022-44. Generally, in lieu of actual lodging, meal, and incidental expenses incurred, a payer may consider substantiated for federal tax purposes an employee’s… Read More »Crypto M&A Slows As Its Own Type Of Winter Sets In

ESG funds are ‘definitely at a crossroads’: EY executive

When the United Nations (UN) first laid out principles for environmental, social, and corporate governance (ESG) investing in 2006, then-Secretary General Kofi Annan hailed the considerations as critical to underpinning “responsible investing” in the financial markets. Amid growing scrutiny from conservative lawmakers and accusations of greenwashing at some of the world’s largest funds, these so-called green funds stand at… Read More »ESG funds are ‘definitely at a crossroads’: EY executive

Analysis: A crowd of dollar bulls raises the risk of a violent pullback

Some investors are growing concerned the dollar’s meteoric rise is setting the stage for a rapid reversal, which would bruise those who have sought refuge in the U.S. currency in recent months. Soaring U.S. interest rates, a comparatively strong American economy, and demand for a haven from wild gyrations in asset prices have lured investors… Read More »Analysis: A crowd of dollar bulls raises the risk of a violent pullback

The new minimum tax could hit Berkshire Hathaway and Amazon hardest, a study shows

KEY POINTS The UNC Tax Center used 2021 financials to predict the effect of the Inflation Reduction Act’s minimum corporate tax. The 15% minimum tax would impact around 78 companies, with Berkshire Hathaway and Amazon paying the most. President Joe Biden signed the tax into law, along with the rest of the Inflation Reduction Act,… Read More »The new minimum tax could hit Berkshire Hathaway and Amazon hardest, a study shows

The IPO market went from ‘boom to bust in 2022. Here’s what’s driving the massive slowdown

From the best of times to the worst of times: The market for initial public offerings has fallen off a cliff in 2022. Investors faced with high inflation and rising interest rates have ditched high-flying growth stocks and turned to safer, more profitable alternatives. The decline has been striking given the record level of proceeds… Read More »The IPO market went from ‘boom to bust in 2022. Here’s what’s driving the massive slowdown

Crypto M&A Slows As Its Own Type Of Winter Sets In

After a fast start to the year, M&A deal-making in crypto has hit its own type of “winter.” Earlier this month, one-click checkout company Bolt dropped plans to buy crypto and payment infrastructure company, Wyre, for $1.5 billion. The news came just more than three weeks after digital asset investment firm Galaxy Digital called off its proposed $1.2 billion acquisition of Palo… Read More »Crypto M&A Slows As Its Own Type Of Winter Sets In

The Independent Contractor Dilemma

Gig economy companies classifying their workers as independent contractors continue to face lawsuits, state action, and federal agency enforcement For much of the last decade, a legal and regulatory storm at the state and federal levels has surrounded the classification of workers as “independent contractors” or “employees.” The dramatic growth of the gig economy, especially… Read More »The Independent Contractor Dilemma

85% of Companies Still Actively Hiring Despite Recession Fears: Weekly Stat

Less than one-third of HR professionals are preparing for an economic slowdown, according to a new study. While CFOs are tightening budgets in preparation for a likely economic downturn, their counterparts in human resources are still focused on putting the best quality employees in an ideal work environment, according to a recent survey from Challenger, Gray &… Read More »85% of Companies Still Actively Hiring Despite Recession Fears: Weekly Stat

Fed Signals No Letup in Inflation-Fighting Rate Increases

While Fed officials predict rates going higher than had been expected, we still see rates coming down by the end of 2023. Even as the Federal Reserve notched another aggressive interest-rate increase Wednesday, officials are once again letting investors, businesses, and consumers know there will be more where that came from in the months ahead.… Read More »Fed Signals No Letup in Inflation-Fighting Rate Increases

Here’s what the Federal Reserve’s third 75 basis point interest rate hike means for you

KEY POINTS The Federal Reserve raised interest rates by three-quarters of a point, citing persistent inflation. Everything from mortgages and credit cards to student and car loans will be impacted by another major rate hike. Here’s what it could mean for your monthly expenses. The Federal Reserve raised the target federal funds rate by 0.75 percentage points for the third… Read More »Here’s what the Federal Reserve’s third 75 basis point interest rate hike means for you

Who Actually Qualifies for the Employee Retention Credit?

Even companies that have claimed the ERC may want to review their documentation of qualification for the credit. The Employee Retention Credit (ERC) started out as something of a secret. Originally part of the CARES Act, the ERC was limited in 2020 and only available to organizations that did not receive Paycheck Protection Program (PPP)… Read More »Who Actually Qualifies for the Employee Retention Credit?

Fed Raises Interest Rates by 0.75 Percentage Point for Third Straight Meeting

The Federal Reserve approved its third consecutive interest-rate rise of 0.75 percentage points and signaled additional large increases were likely even though they are raising the risk of recession. Fed officials voted unanimously to lift their benchmark federal-funds rate to a range between 3% and 3.25%, a level last seen in early 2008. Nearly all of them expect to… Read More »Fed Raises Interest Rates by 0.75 Percentage Point for Third Straight Meeting

Mortgage demand rises for the first time in six weeks, despite sharply higher interest rates

KEY POINTS The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.25% from 6.01%. Applications to refinance a home loan, which are usually very sensitive to big rate swings, actually rose 10% for the week, although they were still 83% lower than the same week one… Read More »Mortgage demand rises for the first time in six weeks, despite sharply higher interest rates

U.S. Retirees Aren’t Waiting Till Age 70 to Collect Social Security

There’s big money in waiting to collect Social Security, but most U.S. seniors leave that cash on the table. The U.S. government is not hiding the fact that the longer you wait to collect Social Security, the more money you collect. In fact, the concept is fairly straightforward. Here’s the deal, straight from the U.S. Social… Read More »U.S. Retirees Aren’t Waiting Till Age 70 to Collect Social Security

Boomer’s remorse: Here are the top 5 ‘big money’ purchases you’ll (probably) really regret in retirement

One surprise that hits retirees in their first few years is that even without the costs of working and contributing to retirement accounts, they end up spending more than when they held down a job. Don’t miss Mitt Romney says a billionaire tax will trigger demand for these two physical assets — get in now before the… Read More »Boomer’s remorse: Here are the top 5 ‘big money’ purchases you’ll (probably) really regret in retirement

Delta, JetBlue: Corp. Travel Ramping Up, No Cracks in Demand

Delta Air Lines and JetBlue Airways each have seen business travel ramp up again in September, with no discernible “cracks” in total demand, according to executives from each carrier, who spoke last week at a Morgan Stanley conference.  “I think everybody is looking for cracks, and what I’d say is that we haven’t seen any… Read More »Delta, JetBlue: Corp. Travel Ramping Up, No Cracks in Demand

Rising Interest Rates Squeeze Stocks on Both Sides, Constraining Earnings, Multiples

Stocks fell and government bond yields rose to multiyear highs Tuesday ahead of the next decision by the Fed’s rate-setting committee  Stocks fell Tuesday ahead of the Federal Reserve’s next policy decision as investors grappled with the impact of rising rates on corporate earnings and valuations. The central bank is expected to sharply raise interest rates again… Read More »Rising Interest Rates Squeeze Stocks on Both Sides, Constraining Earnings, Multiples

Morgan Stanley, Goldman Sachs Warn of Mounting Risks for US Earnings

Higher rates and shrinking margins are among key concerns Goldman likes companies with the highest returns on capital After a hotter-than-expected inflation print and FedEx Corp.’s shocking profit warning, top Wall Street strategists see mounting risks for US earnings and equity valuations. Both Morgan Stanley’s Michael J. Wilson and Goldman Sachs Group Inc.’s David J. Kostin said headwinds… Read More »Morgan Stanley, Goldman Sachs Warn of Mounting Risks for US Earnings

Federal Reserve under pressure to back up hawkishness with rate projections

US central bank to publish first ‘dot plot’ since June after months of persistently high inflation Federal Reserve officials are under pressure to prove they are serious about stamping out elevated inflation by backing up their hawkish rhetoric with a new set of interest rate projections set to be published this week. Following its two-day… Read More »Federal Reserve under pressure to back up hawkishness with rate projections

Central banks set to hit peak rates at a faster pace

Markets are increasingly betting on policymakers raising borrowing costs higher and faster Investors are pricing in a sharper surge in interest rates over the coming months after the world’s major central banks strengthened their resolve to tackle soaring prices, signaling they would prioritize inflation over growth. A Financial Times analysis of interest rate derivatives, tracking… Read More »Central banks set to hit peak rates at a faster pace

10-year Treasury yield jumps to 3.51%, the highest level since 2011

Treasury yields climbed on Monday as traders anticipated the Federal Reserve’s next moves in the face of persistently high inflation. The benchmark 10-year Treasury yield gained 6 basis points to 3.518%, hitting its highest level since April 2011, and was last up 4 basis points to 3.49%. The yield on the 2-year Treasury bond rose 9 basis points to… Read More »10-year Treasury yield jumps to 3.51%, the highest level since 2011

US wholesale inflation declined in August to still-high 8.7%

Inflation at the wholesale level jumped 8.7% in August from a year earlier, a slowdown from July yet still a painfully high level that suggests prices will keep spiking for months to come. Wednesday’s report from the Labor Department also showed that on a month-to-month basis, the producer price index — which measures inflation before… Read More »US wholesale inflation declined in August to still-high 8.7%

IRS’s extra enforcement funding brings audit worries

Taxpayers are concerned the extra $80 billion will lead to more tax audits The additional $80 billion in funding over the next decade for the Internal Revenue Service from the Inflation Reduction Act is supposed to go toward improving taxpayer service, modernizing the IRS’s outdated technology, increasing enforcement efforts, and hiring more staff to process… Read More »IRS’s extra enforcement funding brings audit worries

US 2- to 30-Year Curve Reaches Most Inverted Level This Century

The premium of the two-year Treasury yield over the comparable 30-year benchmark increased to a level unseen this century after short-end rates extended their climb in the wake of this week’s hotter-than-anticipated US consumer-price inflation data. The two-year yield was as much as 35 basis points above the 30-year rate on Thursday, sending the inversion… Read More »US 2- to 30-Year Curve Reaches Most Inverted Level This Century

There could be a record high Social Security cost-of-living adjustment in 2023, but it’s not set in stone: 3 things to watch

KEY POINTS The Social Security cost-of-living adjustment for 2023 could be 8.7%, according to a new estimate from The Senior Citizens League. An increase that high would be the biggest cost-of-living adjustment in four decades, surpassing this year’s 5.9% cost-of-living adjustment. There is still one more month before the official adjustment is announced. Here are… Read More »There could be a record high Social Security cost-of-living adjustment in 2023, but it’s not set in stone: 3 things to watch

IRS delays in processing NOL refund claims cost taxpayers millions in interest

The Internal Revenue Service’s backlog is having an impact in many areas, including the handling of noncorporate applications for refund claims on net operating losses. The Internal Revenue Service’s continuing backlog is having an impact in many areas, including the processing of noncorporate applications for refund claims on net operating losses by pass-through businesses, leading… Read More »IRS delays in processing NOL refund claims cost taxpayers millions in interest

Stubbornly high rents and food prices boost U.S. inflation in August

Summary The consumer price index rises 0.1% in August Rents, food, and healthcare account for the increase in CPI Core CPI surges 0.6%; increases 6.3% year-on-year U.S. consumer prices unexpectedly rose in August and underlying inflation accelerated amid rising costs for rents and healthcare, giving the Federal Reserve ammunition to deliver a third 75 basis… Read More »Stubbornly high rents and food prices boost U.S. inflation in August

Fed set for another 75-basis-point rate hike; early pivot unlikely: Reuters poll

The Federal Reserve will deliver another 75-basis-point interest rate hike next week and likely hold its policy rate steady for an extended period once it eventually peaks, according to a Reuters poll of economists released on Tuesday. Policymakers have done little to push back on market pricing for a third consecutive rate hike of three-quarters… Read More »Fed set for another 75-basis-point rate hike; early pivot unlikely: Reuters poll

Finance Chiefs Struggle to Set Guidance as Economy Flashes Mixed Signals

Finance chiefs are finding it harder to peg yearly guidance as they struggle for visibility on the direction of the economy, leading them to broaden their annual revenue ranges and revise spending plans more frequently. Finance chiefs, through their annual guidance, offer clues on the health of the business. But given the mixed signals in the… Read More »Finance Chiefs Struggle to Set Guidance as Economy Flashes Mixed Signals

Congress And IRS Need To Focus On Those Backlogged Employee Retention Credit Claims

The Employee Retention Credit (ERC) remains one of the best tax benefits out there for small and medium businesses – as well as tax-exempt entities – to keep doors open and employees on payroll during this difficult economy. As I’ve previously written in detail, the ERC provides eligible employers up to $7,000 per employee per quarter in… Read More »Congress And IRS Need To Focus On Those Backlogged Employee Retention Credit Claims

U.S. SEC to set up a new office for crypto filings

The U.S. securities regulator will set up two new offices to deal with filings related to crypto assets and the life sciences sector, the agency said on Friday. The “Office of Crypto Assets” and the “Office of Industrial Applications and Services” will join seven existing offices under the Securities and Exchange Commission (SEC) department which… Read More »U.S. SEC to set up a new office for crypto filings

Is it possible to save too much for retirement? Here are the top 3 signs you’re going way overboard

When it comes to retirement, you can’t save enough money — until you do. Saving for a post-work world is now a near-universal ideal: The 50-something workers who fret over their nest eggs have been joined by younger workers, who during the pandemic tasted new working arrangements and the promise of life outside the office.… Read More »Is it possible to save too much for retirement? Here are the top 3 signs you’re going way overboard

Slower Inflation Unlikely to Sway Fed From Another Jumbo Hike

US inflation likely slowed for a second month in August as gas prices continued to drop, but that probably won’t be enough to stop the Federal Reserve from delivering another jumbo rate hike later this month. Tuesday’s consumer price index, landing during the central bank’s pre-meeting quiet period, is the last major report they’ll receive… Read More »Slower Inflation Unlikely to Sway Fed From Another Jumbo Hike

Converting an S Corp to a C Corp

Whatever structure your clients launched with, at some point, for various reasons, changing structures may become a valid consideration. Many factors determine what kind of business structure your clients choose when starting their businesses. But whatever structure your clients launched with, at some point, for various reasons, changing structures may become a valid consideration. Although… Read More »Converting an S Corp to a C Corp

The U.S. is on track for a soft landing, Goldman Sachs chief economist says

It’s too soon to declare victory, but Federal Reserve Chair Jerome Powell is on track to navigate the U.S. economy to a soft landing. That’s the view of Jan Hatzius, the chief economist of Goldman Sachs, in a new note to clients. “Since the FOMC started hiking the fund’s rate early this year, we have… Read More »The U.S. is on track for a soft landing, Goldman Sachs chief economist says

Fed’s Brainard: Rates to rise higher, stay elevated longer

The Federal Reserve will need to continue lifting its short-term interest rate to a level that restricts economic growth and keep it there for an extended period, a top Fed official said Wednesday. In her remarks to a banking industry conference, Fed Vice Chair Lael Brainard echoed similarly tough comments about inflation delivered by Chair Jerome… Read More »Fed’s Brainard: Rates to rise higher, stay elevated longer

IRS continued to delay business tax refunds from pandemic

The Internal Revenue Service has been slow in processing employer tax credits and tax refunds that businesses were supposed to receive. The Internal Revenue Service has been slow in processing employer tax credits and tax refunds that businesses were supposed to receive to cope with the pandemic, according to a new report. The report, released Tuesday… Read More »IRS continued to delay business tax refunds from pandemic

Mortgage demand drops further as interest rates shoot back to June high

KEY POINTS The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 5.94% last week from 5.80% the previous week, according to the Mortgage Bankers Association. Mortgage applications to refinance a home loan fell another 1% for the week and were 83% lower than the same week one year ago.… Read More »Mortgage demand drops further as interest rates shoot back to June high

Gallup Poll: ‘Quiet Quitters’ Make Up Half of the U.S. Workforce

Gen Z and younger millennials under 35 are one cohort that has seen a large drop in employee engagement. About half of U.S. workers could be described as “quiet quitters,” according to new research by survey firm Gallup, meaning they fulfill their job description but are psychologically detached from their work. According to Gallup’s survey… Read More »Gallup Poll: ‘Quiet Quitters’ Make Up Half of the U.S. Workforce

OPEC+ agrees to make a token supply cut to steady the oil market

OPEC+ agreed to make a token oil supply cut for October, a surprise moves that shows the alliance is seeking to stabilize global markets after a faltering economic backdrop triggered the longest price rout in two years. The group will reduce production by 100,000 barrels a day next month, taking output back to August levels.… Read More »OPEC+ agrees to make a token supply cut to steady the oil market

U.S. Dollar Strength Lifts Americans’ Relative Spending Power

Inflation is high, but U.S. consumers’ relative purchasing power has never been higher. An index that considers inflation when measuring the dollar’s strength relative to currencies of major U.S. trading partners in July topped its previous peak in 2002, showing how the dollar’s surge has helped mitigate rising domestic prices. The Real Effective Exchange Rate… Read More »U.S. Dollar Strength Lifts Americans’ Relative Spending Power

Single workers, families, retirees: How much cash you need in an emergency fund at every career stage, according to advisors

KEY POINTS If you’re feeling unsteady amid stock market volatility, high inflation, and rising interest rates, you may wonder how much cash you really need to have handy. Experts may suggest three months, six months, or one year of expenses, depending on your situation. If you’re feeling unsteady amid stock market volatility, high inflation, and… Read More »Single workers, families, retirees: How much cash you need in an emergency fund at every career stage, according to advisors

Payrolls rose 315,000 in August as companies keep hiring

KEY POINTS Nonfarm payrolls rose by 315,000 jobs in August, just below the Dow Jones estimate of 318,000. The unemployment rate climbed to 3.7%, two-tenths of a percentage point higher than expectations. Wages also rose, with average hourly earnings up 5.2% from a year ago, slightly lower than the estimate. The biggest sector gainers were… Read More »Payrolls rose 315,000 in August as companies keep hiring

Jobless claims tumble to a nine-week low of 232,000. U.S. layoffs are still historically low.

The number of people who applied for unemployment benefits at the end of August fell to a nine-week low of 232,000, showing no sign that the slowing U.S… The numbers: The number of people who applied for unemployment benefits at the end of August fell to a nine-week low of 232,000, showing no sign that a… Read More »Jobless claims tumble to a nine-week low of 232,000. U.S. layoffs are still historically low.

A deeper dive into the Inflation Reduction Act’s tax provisions

The budget reconciliation bill, P.L. 117-169, known as the Inflation Reduction Act, was signed into law on Aug. 16. It includes numerous tax provisions, including new corporate taxes. It also contains numerous clean-energy-related tax incentives and money for IRS enforcement and other initiatives. Earlier budget reconciliation bill proposals were known as the Build Back Better… Read More »A deeper dive into the Inflation Reduction Act’s tax provisions

Euro zone inflation hits another record of 9.1% as food and energy prices soar

KEY POINTS Euro zone inflation hit a new record high in August at 9.1%. The rate was above expectations, with a Reuters poll of economists anticipating a rate of 9%. Euro zone inflation hit a new record high in August of 9.1%, according to flash figures from Europe’s statistics office Eurostat, with high energy prices… Read More »Euro zone inflation hits another record of 9.1% as food and energy prices soar

Job openings top 11.2 million in July, well above estimate and nearly double the available workers

There were nearly 1 million more job openings than expected in July, an inflationary sign that the U.S. labor market is still extremely tight, the Bureau of Labor Statistics reported Tuesday. Available positions totaled 11.24 million for the month, well in excess of the 10.3 million FactSet estimate, according to the Job Openings and Labor Turnover… Read More »Job openings top 11.2 million in July, well above estimate and nearly double the available workers

Fed’s instant payment service ‘FedNow’ is set to launch by July 2023

The Federal Reserve is on track to deliver an instant payment service called FedNow between May and July 2023, the central bank’s clearest timeline yet for a new system enabling the settlement of U.S. payments in seconds. The FedNow service also potentially negates the need for the creation of a central bank digital currency, or… Read More »Fed’s instant payment service ‘FedNow’ is set to launch by July 2023

Federal Reserve says a real-time payment system could begin as early as May 2023

The FedNow system is supposed to be a cheaper option than wire transfers or debit card transaction fees. A Federal Reserve official said the agency’s new real-time payments system FedNow is slated to launch as early as May 2023. FedNow has been in development for around a decade and is supposed to allow banks to send payments… Read More »Federal Reserve says a real-time payment system could begin as early as May 2023

US stocks tumble more than 3% after Powell stands firm on rate rises

Federal Reserve chair says central bank ‘must keep at it until the job is done on inflation US stocks tumbled after Federal Reserve chair Jay Powell emphasized his resolve to hoist interest rates to curb inflation in a hawkish address on Friday at the annual Jackson Hole central banking summit. Wall Street’s S&P 500 index… Read More »US stocks tumble more than 3% after Powell stands firm on rate rises

Inflation Eased in July, According to the Fed’s Preferred Measure

The pace of consumer price gains slowed, though it stayed near a four-decade high Inflation decelerated in July, measured by the Federal Reserve’s preferred gauge, though it remained close to its fastest pace since 1982. Consumer prices rose 6.3% in July from a year earlier, down from 6.8% in June, as measured by the Commerce… Read More »Inflation Eased in July, According to the Fed’s Preferred Measure

Key US Growth Measures Diverge, Complicating Recession Debate

Second quarter GDP contracted 0.6%, better than the prior estimate Gross domestic income rose at a 1.4% pace, and spending revised up The government’s main measures of US growth pointed in different directions in the first half of 2022, adding to the ongoing debate on the health of the economy. Inflation-adjusted gross domestic product, or… Read More »Key US Growth Measures Diverge, Complicating Recession Debate

US Corporate Profits Soar, Taking Margins to Widest Since 1950

A measure of US profit margins has reached its widest since 1950, suggesting that the prices charged by businesses are outpacing their increased costs for production and labor. After-tax profits as a share of gross value added for non-financial corporations, a measure of aggregate profit margins, improved in the second quarter to 15.5% — the… Read More »US Corporate Profits Soar, Taking Margins to Widest Since 1950

SEC adopts ‘pay versus performance’ disclosure rules

The SEC on Thursday adopted amendments that require specific disclosures about the relationship between a public company’s executive compensation and its financial performance. Registrants must begin to comply in proxy and information statements that are required to include Item 402 executive compensation disclosure for fiscal years ending on or after Dec. 16, 2022. The “pay versus performance”… Read More »SEC adopts ‘pay versus performance’ disclosure rules

Here’s what President Biden’s student loan forgiveness means for your taxes

KEY POINTS Borrowers who will benefit from student loan forgiveness won’t need to worry about getting hit with a federal tax bill. But they may owe state taxes on the forgiven debt. Here’s what you need to know. If you’re poised to benefit from President Joe Biden’s up to $20,000 in student loan forgiveness, you may… Read More »Here’s what President Biden’s student loan forgiveness means for your taxes

Inflation Gets a Boost From Higher Wages and Import Prices, New York Fed Study Says

Pass-through effects have increased during the pandemic Imported input prices have a larger effect on US inflation US consumer inflation, which is running near the fastest pace in 40 years, has been increasingly affected by higher wages and import prices, according to a new study from the Federal Reserve Bank of New York. “We find that the… Read More »Inflation Gets a Boost From Higher Wages and Import Prices, New York Fed Study Says

US Business Activity Contracts Again, Weakest Since May 2020

US business activity contracted for a second straight month in August, reflecting softer demand at both manufacturers and service providers and adding to concerns about the health of the overall economy. The S&P Global flash composite purchasing managers output index slid 2.7 points to 45, the weakest reading since May 2020, the group reported Tuesday.… Read More »US Business Activity Contracts Again, Weakest Since May 2020

Which Vehicles Qualify for New $7,500 Electric Vehicle Tax Credit?

The Inflation Reduction Act only offers tax credits on electric vehicles assembled in North America. Those looking to purchase an electric vehicle could be eligible for a $7,500 tax credit from the federal government, but because of language in the recently signed Inflation Reduction Act, only certain vehicles qualify. The new law hopes to encourage electric… Read More »Which Vehicles Qualify for New $7,500 Electric Vehicle Tax Credit?

We’re in a ‘housing recession,’ experts say. Here’s what that means for homeowners, sellers, and buyers

KEY POINTS Sales of existing homes were down last month by 20.2% to 4.8 million properties from 6 million a year earlier. However, the median price last month was $403,800, up 10.8% from July 2021, and homes are still selling quickly. There are implications for buyers and sellers, who may already be seeing shifts in… Read More »We’re in a ‘housing recession,’ experts say. Here’s what that means for homeowners, sellers, and buyers

IPO Market Faces Worst Year in Two Decades. ‘Really Hard Pill to Swallow.’

Inflation, rising interest rates, and Russia’s invasion of Ukraine sent shock waves through the stock market, putting a freeze on the IPO pipeline The IPO market is on pace for its worst year in decades, leaving fledgling companies with few options but to burn through cash while they wait for the stock market to calm.… Read More »IPO Market Faces Worst Year in Two Decades. ‘Really Hard Pill to Swallow.’

Fewer Americans are switching to new jobs, NY Fed survey shows

Workers are less satisfied with their wages as inflation erodes buying power The number of Americans quitting their jobs for a different one declined in July, according to a Federal Reserve Bank of New York survey published Monday, a sign the so-called Great Resignation is slowing down.  The rate of transitioning to a different employer… Read More »Fewer Americans are switching to new jobs, NY Fed survey shows

Inflation is through the roof: How the Consumer Price Index measures the cost of living

As the prices of many goods and services continue to skyrocket, there’s been a ton of media coverage on the subject of inflation. In July, the year-over-year inflation rate was a whopping 8.5%, as measured by the Consumer Price Index, or CPI. Most news coverage references CPI as the main indicator of how bad inflation is… Read More »Inflation is through the roof: How the Consumer Price Index measures the cost of living

Fed Jackson Hole preview: Powell to stress a recession won’t stop Fed’s fight against high inflation

Federal Reserve Chairman Jerome Powell will use his closely-watched Jackson Hole speech this week to stress that the central bank is going to bring down the high U.S. inflation rate even if it means a recession, economists said. “The core message will be the Fed’s dogged determination to bring inflation down even though they know… Read More »Fed Jackson Hole preview: Powell to stress a recession won’t stop Fed’s fight against high inflation

RSM U.S. Supply Chain Index: Back to normal for the first time since the pandemic hit

The U.S. Supply Chain Index in July was back above neutral for the first time in nearly three years on the back of the continuing strong rebounds in inventories and capacity utilization. With most of the COVID-19 concerns behind us and the renormalization of supply-chain linkages around the world, we should expect substantial relief coming… Read More »RSM U.S. Supply Chain Index: Back to normal for the first time since the pandemic hit

The U.S. may fall into recession by early 2023: Conference Board

Dive Brief: The U.S. economy probably will not grow this quarter and, after more weakening, may fall into a brief recession by early next year, the Conference Board said Thursday, citing its Leading Economic Index (LEI). “Consumer pessimism and equity market volatility — as well as slowing labor markets, housing construction, and manufacturing new orders — suggest… Read More »The U.S. may fall into recession by early 2023: Conference Board

Fed planned more tightening while noting the risk of going too far

Dive Brief: Federal Reserve officials last month affirmed their goal of curbing inflation to 2% and favored further increases in borrowing costs while noting the risks of overdoing their most aggressive withdrawal of stimulus since the 1980s. Fed officials “continued to anticipate that ongoing increases in the target range for the federal funds rate would… Read More »Fed planned more tightening while noting the risk of going too far

Inflation Reduction Act potentially doubles R&D tax credit

The Inflation Reduction Act that President Biden signed into law this week has a lesser-known provision that could benefit many small business startups, allowing them to potentially double the amount they can claim on the research and development tax credit from $250,000 to $500,000 per year against payroll taxes. Under current law, small businesses that… Read More »Inflation Reduction Act potentially doubles R&D tax credit

Layoffs Are Planned at Half of US Companies, PwC Survey Shows

If your organization isn’t letting people go, the one next door probably is. That’s a key finding from a survey released Thursday by consultant PwC, which last month polled more than 700 US executives and board members across a range of industries. Half of the respondents said they’re reducing headcount or plan to, and 52%… Read More »Layoffs Are Planned at Half of US Companies, PwC Survey Shows

Stock Market Plunge Punished 401(k) Millionaires

Data from Fidelity found the number of seven-figure retirement accounts down sharply after stocks cratered in the first half of 2022. The number of people with at least $1 million in their Fidelity 401(k) accounts plunged 29% in the second quarter to 294,000, data from the company shows. The S&P 500 posted its lowest closing price so far this year on… Read More »Stock Market Plunge Punished 401(k) Millionaires

Fed sees interest rate hikes continuing until inflation eases substantially, minutes show

Federal Reserve officials at their July meeting indicated they likely would not consider pulling back on interest rate hikes until inflation came down substantially, according to minutes from the session released Wednesday. During a meeting in which the central bank approved a 0.75 percentage point rate hike, policymakers expressed resolve to bring down inflation that is running… Read More »Fed sees interest rate hikes continuing until inflation eases substantially, minutes show

IRS pledges not to use the extra funding to audit lower-income taxpayers

Internal Revenue Service Commissioner Chuck Rettig is promising not to use the nearly $80 billion his agency will be receiving over the next 10 years to increase audits of small businesses or taxpayers who earn less than $400,000. The Inflation Reduction Act, which President Biden signed into law Tuesday, allocates $79.6 billion to the IRS… Read More »IRS pledges not to use the extra funding to audit lower-income taxpayers

People aren’t cutting back on tips even as inflation surges

KEY POINTS Tips for wait staff and cashiers haven’t taken a hit despite inflation, according to new data. Aggregated sales data from Toast showed people tipped an average of 19.6% at full-service eateries and 16.9% at quick-service restaurants during the second quarter. The cost of food away from home rose 7.6% over the 12 months… Read More »People aren’t cutting back on tips even as inflation surges

Retail sales little changed in July amid a fall in gas prices and a drop in auto sales

KEY POINTS Retail sales for July were flat, compared with the estimate for a 0.1% gain. Excluding autos, sales increased 0.4% against expectations for no gain. Falling fuel prices held back receipts at gas stations, while consumers took those savings and spent them at other retailers. Retail activity was flat in July as falling fuel… Read More »Retail sales little changed in July amid a fall in gas prices and a drop in auto sales

Biden signs the Inflation Reduction Act into law, setting 15% minimum corporate tax rate

KEY POINTS President Joe Biden signed the Inflation Reduction Act into law The new law passed with majority Democratic support in the Senate and the House. The more than $430 billion package is expected to reduce the deficit by more than $300 billion over a decade. After more than a year of debate over costs,… Read More »Biden signs the Inflation Reduction Act into law, setting 15% minimum corporate tax rate

SPAC Activity in July Reached the Lowest Levels in Five Years

Once-hot blank-check firms have fallen out of favor alongside cryptocurrencies and other speculative investments SPACs were one of the hottest investments on Wall Street early last year, booming alongside cryptocurrencies, meme stocks, and other speculative trades as an easy way for buzzy startups to raise money and go public. Fast forward 18 months and much of the… Read More »SPAC Activity in July Reached the Lowest Levels in Five Years

Employers Project 5.6% Jump in Health Benefit Costs

The increase for 2023 may rise even higher as insurance carriers price record inflation into employers’ renewal rates, per a Mercer survey. With inflation-eating wage gains, most workers would rather not see more money drained from their paychecks to cover healthcare insurance. At the same time, healthcare plans are the most expensive part of benefits… Read More »Employers Project 5.6% Jump in Health Benefit Costs

New Electric Car Tax Credits Are About to Radically Change Buying EVs

A number of EVs should become more affordable, but only after a “subsidy winter” when far fewer cars will qualify. Big changes are coming to the federal electric car tax credit with congressional passage of the Inflation Reduction Act, changes that may make it eventually easier to own an EV, but initially harder to afford one.… Read More »New Electric Car Tax Credits Are About to Radically Change Buying EVs

Fed Minutes May Reveal Inclinations on Size of Next Rate Hike

An account of the debate at the Federal Reserve’s July policy meeting,set to be published after two weeks of whiplash on Wall Street, willprobably offer clues as to what would push the central bank to go bigwith tightening yet again in September. Fed officials’ decision at their July 26-27 gathering to raise theirbenchmark interest rate… Read More »Fed Minutes May Reveal Inclinations on Size of Next Rate Hike

Jamie Dimon sounds off on… almost everything: Morning Brief

People want to hear from JPMorgan (JPM) CEO Jamie Dimon. He’sinsightful, provocative, and never boring. So it’s little wonder that the company puts him on calls with wealthyclients to give his take on, well, just about everything, which iswhat Dimon did this past Tuesday. Here are some curated highlights of Dimon’s comments, which, believeme, could’ve… Read More »Jamie Dimon sounds off on… almost everything: Morning Brief

Stock Market Recovery Faces a New Hurdle as Record Buybacks Slow

An end to corporate America’s record stock-buying spree is givingequity bulls one more thing to worry about. JPMorgan Chase & Co., Citigroup Inc., and Best Buy Co Inc. all pausedbuyback plans when reporting their second-quarter results, deciding tohold on to cash instead as the Federal Reserve’s interest-rate hikesrisk driving the economy into a recession. They’re… Read More »Stock Market Recovery Faces a New Hurdle as Record Buybacks Slow

Venture Capital’s Cash Stockpile Swells Amid Slowdown

Venture-capital firms are sitting on a record cash pile. Theirso-called dry powder—money raised but not deployed—has increased bymore than $100 billion worldwide since the end of last year, reachingalmost $539 billion in July, according to data firm Preqin Ltd. The buildup comes as many venture firms have slowed deal-making amidthe market pullback, a signal that… Read More »Venture Capital’s Cash Stockpile Swells Amid Slowdown

Most Americans: ‘I’ve Got 99 Problems, But an IRS Audit Ain’t One

A new poll found that a majority of voters (76%) weren’t worried aboutthe prospect of being audited by the IRS. As we await the House of Representatives’ vote on legislation thatwould provide the IRS with $80 billion in additional funding over thenext decade, a new Morning Consult/Politico poll found that a majorityof Americans are not… Read More »Most Americans: ‘I’ve Got 99 Problems, But an IRS Audit Ain’t One

Fed expected to stick with hawkish rate hikes until data show further slowing in inflation

KEY POINTS The Federal Reserve is unlikely to pivot from its hawkish interestrate hikes despite positive signs this week that inflation in the U.S.could be easing, according to market strategists.As both CPI and PPI soften, markets have started to moderate theirexpectations for Fed rate hikes.But that doesn’t mean it is “mission complete” for the Fed,… Read More »Fed expected to stick with hawkish rate hikes until data show further slowing in inflation

House passes Inflation Reduction Act, sending climate and health bill to Biden

House Democrats on Friday approved a sprawling bill to lowerprescription drug costs, address global warming, raise taxes on somebillion-dollar corporations, and reduce the federal deficit, sendingto President Biden the long-delayed, last component of his economicagenda in time for this year’s elections. The 220-to-207 vote marked the culmination of roughly a year and ahalf of debate… Read More »House passes Inflation Reduction Act, sending climate and health bill to Biden