Biden’s tax hikes are raising concern as the U.S. economy faces an increased risk of recession. President Biden is expected to lay out dramatic increases in rates paid by corporations and wealthy Americans as part of his budget blueprint for fiscal 2024. “On the impact of tax increases in a recessionary period, we are highly concerned,” Chris Netram, the managing vice president of tax and domestic economic policy at the NAM, has previously said. As for the risk of recession, the difference in the yield on 2-year and 10-year Treasury notes has further inverted, sounding alarms for investors. “Every time the Fed gets more hawkish, the curve gets more inverted, which is the market’s way of saying there will be Fed rate cuts later because of a slowdown in growth and/or a recession,” said Facet Wealth’s head of investments. In response to Fed Chairman Powell’s recent statements, Citadel founder Ken Griffin urges Powell to “say less”. Griffin, Wall Street’s most successful hedge fund manager last year, criticizes Powell’s variance in recent messaging and fears the Fed will be stuck in a damaging game of catch-up that only ends in stricter policy decisions.
Fox Business/Megan Henney
Biden set to unveil slew of tax hikes on wealthy Americans, corporations in budget
President Biden will make a renewed push to overhaul the nation’s tax code and dramatically raise the rates paid by corporations and wealthy Americans.
The president is expected to lay out the tax hikes Thursday as part of his budget blueprint for federal spending in fiscal 2024, which begins in October. The higher taxes would likely be borne by Wall Street and the top sliver of U.S. households.
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MarketWatch/Vivien Lou Chen
Bond-market recession gauge plunges further into triple digits below zero after reaching four-decade milestone
One of the bond market’s most reliable gauges of impending U.S. recessions plunged further into triple-digit negative territory on Wednesday, as Federal Reserve Chairman Jerome Powell reiterated the need for higher interest rates and a possible reacceleration in the pace of hikes.
The widely followed spread between 2- and 10-year Treasury yields finished the New York session at minus 109 basis points, a day after ending in triple-digit negative territory for the first time since Sept. 22, 1981.
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Fortune via Yahoo Finance/Christiaan Hetzner
Wall Street’s most successful hedge fund just politely told Fed Chair Jay Powell to shut up
If there was one piece of advice the boss of hedge fund Citadel LLC would give to the Federal Reserve, it would be to stop talking so much.
Every time Fed Chair Jay Powell opens his mouth to discuss all the progress the central bank has achieved cooling off last year’s red-hot inflation, he may actually just be making his own job harder by confusing investors with different messages.
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