Former Kansas City Federal Reserve CEO and President Thomas Hoenig is warning that inflation, over time, will lessen our nation’s economic growth. During an interview with Fox, he said, “Of course, this kind of inflation is a tax on the consumer, on the public, on businesses. And it’s a regressive tax that will over time undermine the economy and undermine growth. But it will take some time…” In other news, AARP has created a list of tips to help you start and build an emergency fund.
Inflation will ‘undermine’ US economy, growth over time: Thomas Hoenig
Former Kansas City Federal Reserve CEO and President Thomas Hoenig argued inflation is a tax on the consumer and that over time it will diminish American economic growth on FOX Business’ “Mornings with Maria.”
Watch the full interview, here.
SEC says brokers enticed by payment for order flow are making trading into a game to lure investors
The Securities and Exchange Commission said online brokerages, enticed to increase revenue through the controversial industry practice of payment for order flow, are turning stock-trading into a game in order to encourage activity from retail investors.
Wall Street’s main regulator on Monday released its highly anticipated report on the GameStop mania earlier this year. The 44-page report detailed how the trading frenzy went down and raised red flags on a number of issues, including the back-end payments that brokerages receive, gamification of trading, as well as disclosures on short sales. But it stopped short of laying blame on a single cause or entity.
You can read the entire story, here.
7 Practical Tips for Building (Or Rebuilding) Your Emergency Fund
Your fridge isn’t freezing, your car isn’t running, you suddenly aren’t working. It can be hard to deal with just one costly event, not to mention several all at once. Yet stuff like this happens every day. Life can be tough — but much easier if you have a cash reserve to cover unexpected expenses.
“Emergency funds are incredibly important because it keeps people from running up credit card debt or pulling money out of retirement accounts to pay for things, both of which can be devastating to your finances,” says Matt Stephens, a certified financial planner (CFP) at AdvicePoint LLC in Wilmington, North Carolina.
During what he called “the year that everything broke,” one of his clients had to repair or replace his lawn mower, irrigation system, garage door, washing machine, garbage disposal, microwave and refrigerator. The client’s wife also had major surgery, with out-of-pocket expenses over $10,000. “Fortunately, they had a fully funded emergency fund, so they were annoyed, but not devastated.”
“It’s not a matter of if something will go wrong, but when,” says Thomas Scanlon, a CFP at Raymond James in Manchester, Connecticut. “But if you know that you have money in the bank, you won’t be up all night worrying.”
You can read the full story, here.