With COIVD cases still rising, all eyes are on the White House and stock market to see what will happen next. As for the president, Biden is reportedly working on another spending bill – which is even bigger. The new bill is said to have a tax increase for households making more than $400,000 per year. It also may include relief for lower-income households still paying off student loans. As for the market, experts are still keeping a close eye on gold as it continues to put up a fight against the dollar.
Biden Is Considering Major Tax Hikes — What Would They Mean For You?
With his $1.9 trillion relief bill successfully passed, President Joe Biden is reportedly working on an even bigger spending bill next.
And this new bill may come with the first federal tax hike in nearly three decades as the new package is expected to include a corporate tax hike and a raise in the income tax rate for high-earners.
So while you may be wondering whether you’ll get another stimulus check to help with your bills or pay down debt, you may soon be seeing some significant changes to tax law, which will leave some with higher rates and others with more benefits.
While no package has been put together yet, here are the tax changes being mulled over by the current administration.
Reuters via CNBC/Breijesh Patel
Gold ekes out gains on dollar retreat, rising virus cases
Gold edged higher on Friday as concerns over surging coronavirus cases in Europe and a pullback in the dollar offset pressure from rising U.S. Treasury yields, although bullion was still on track for its first weekly decline in three.
Spot gold was up 0.1% at $1,728.08 per ounce. Bullion is down nearly 1% so far this week. U.S. gold futures were up 0.2% at $1,727.90 per ounce.
“The dollar is slightly weaker today but gold has been very resilient recently despite strength in the dollar and rising Treasury yields,” said Xiao Fu, head of commodities markets strategy at Bank of China International.
“On the other hand, we have rising geopolitical risks and a third wave of the pandemic supporting gold prices as well,” she added.
The dollar index eased from a more than four-month peak hit in the previous session. Recent better-than-expected economic readings out of the United States lifted prospects of a strong U.S. economic recovery and strengthened the U.S. currency.
Read what Head of Trading at MKS, Joseph Stefans, see for gold over the next week, here.
CNN Business/Jazmin Goodwin
The Fed will lift restrictions on dividends and buybacks for most banks after June 30
CNN reports that last June, Wall Street’s biggest banks were required to suspend share buybacks in the third quarter and to cap shareholder dividends to the amount paid in the second quarter as a Covid-19 precautionary measure. Restrictions were put in place to shore up capital and to ensure that financial institutions remained strong enough to lend to those affected by the coronavirus pandemic.
“The banking system continues to be a source of strength and returning to our normal framework after this year’s stress test will preserve that strength,” said Randal Quarles, the Fed’s vice chairman of supervision.
Restrictions will only be lifted for banks that pass the central bank’s annual stress test and remain above minimum capital requirements. Otherwise, restrictions will continue through September 30. Banks that still don’t meet the requirements will be imposed with stricter distribution limits, the Fed indicated.
Stress tests “evaluate the resilience of large banks by estimating their losses, revenue and capital levels under hypothetical scenarios over nine future quarters,” according to the Fed’s announcement.
The Fed said results of this year’s test will be released on July 1.
“I have been opposed earlier when we were very concerned about the situation the banks would face about stock buybacks,” Yellen said in a Senate testimony on Wednesday. “But financial institutions look healthier now, and I believe they should have some ability to abiding by the rules to make returns to shareholders.”