The Democratic-led House voted Friday to avert deep spending cuts, including an estimated $36 billion in Medicare cuts next year, that would be triggered by President Biden’s $1.9 trillion coronavirus relief package absent action from Congress.
The booming technology trade that helped lift the market to new highs during the pandemic continues to unwind Thursday as Treasury yields spike further on dovish comments from the Federal Reserve, which experts believe could be fueling concerns over rising inflation and lower stock-market valuations.
President Biden has explicitly vowed that Democrats will increase taxes on the wealthy, adding fuel to congressional Democrats’ plan to ram through higher taxes on party-line votes.
The Federal Reserve kept its policy rate unchanged on Wednesday but sharply ramped up its expectations for economic growth — while affirming that it does not plan to raise interest rates until 2023. The central bank also curiously reworded the public statement accompanying its decision.
President Joe Biden wants higher taxes for big corporations and high earners to “support investments in the U.S. economy” as well as tax relief to ensure that low-income and middle-class families “are not paying more than their fair share,” a top White House economic aide said Tuesday.
Major U.S. banks and credit unions must make the first wave of stimulus payments available to eligible customers by Wednesday at 9:00 a.m., local time—the official payment date designated by the Internal Revenue Service.
