April’s pricing data did little to assuage concerns about inflation. Both the Consumer and Producer Price Indexes came in above expectations, with respective 12-month advances of 8.3% and 11.0%. The metrics showed significant increases in food, energy, and rental apartment prices.
The Federal Reserve raised the benchmark short-term interest rate by one-half a percent (“50 basis points”) at this month’s Federal Open Market Committee (FOMC) meeting. It was the first half-percentage-point hike in 22 years, and another sign that the central bank is playing catch up in its attempt to combat inflation.
While the U.S. economy contracted by an annualized rate of 1.4% in the first quarter, some other economic indicators have been positive. The headline negative number was a stark contrast to the 6.9% increase in gross domestic product recorded in the fourth quarter and worse than the consensus expectation calling for growth of around 1.0%.
An eventual extension to 75 as the age by which retirees must withdraw required minimum distributions (RMDs) from requirement accounts and automatic enrollment of workers in employer plans are among the many ways a bill that has passed the House would expand coverage and use of tax-favored retirement savings.
There is little relief in sight on the inflation front. The Consumer and Producer Price Indexes for March jumped 8.5% and 11.2% year over year, respectively. Rising prices for food and energy commodities were primarily behind the surge in costs.
The nation’s economy added 431,000 non-farm payrolls in March, with a pickup in the more highly-compensated manufacturing and professional and business services jobs to go along with the continued sharp recovery in travel and leisure positions. For the first quarter, an estimated 1.685 million jobs were created, as COVID-19 concerns stateside eased.
Ten years into a bull market and with stocks at record highs, now is an opportune time for investors to rebalance their portfolios. As bull markets mature, portfolios may become over-weighted with equities, increasing an investor’s vulnerability to stock market corrections.
Tax season is officially over, and many of us are looking forward to our tax returns hitting our bank accounts. While some may choose to spend their return on a special treat, others may want to use the extra funds to boost their investments. If you’re trying to decide where to spend (or save) it, here are some ideas for how to make the most of your tax return.
The Federal Reserve is getting into position to move the goal posts. True, it doesn’t plan to shift them dramatically, but it does seem likely to do so modestly and earlier than previously thought. Heretofore, it was expected the Fed would eventually reduce its vast bond purchases.
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