Dallas Fed president: Interest rates to reach pre-pandemic levels as economy recovers

dallas fed president interest rates to reach pre pandemic levels as economy recovers

Sumary of Dallas Fed president: Interest rates to reach pre-pandemic levels as economy recovers:

  • On Thursday that he expects interest rates to reach pre-pandemic levels as the economy recovers, which he said is “a healthy sign”.
  • Kaplan, who is a voting member of the 10-person rate-setting Federal Open Market Committee, made the comment one day after the release of minutes from the central bank’s March meeting, which revealed that the central bank plans to continue the pace of its asset purchase program in an effort to meet its dual mandate of maximum employment and price stability..
  • The median Fed policymaker projection for economic growth this year increased from 4.2% as of December to 6.5%, which, if achieved, would reportedly be the fastest rate of expansion since 1984..
  • He then pointed to pre-pandemic interest rates, noting that in February 2020, before the onset of the coronavirus pandemic, “the 10-year Treasury [note] was in the range of 1.75 to 2%.”.
  • The recent rise in the 10-year yield has rattled investors as it reached higher than the S&P 500’s 1.5% dividend yield..
  • The Biden administration says its so-called American Jobs Plan will be a “once-in-a-century capital investment”.
  • The $2 trillion plan will be entirely funded by Biden proposed Made in America tax plan that would hike the corporate tax rate to 28%, up from 21%, and increase the minimum tax on multinational corporations to 21%..
  • The increase in the corporate tax rate would partially undo former President Trump tax cut which lowered the top corporate rate from 35%, among the highest in the world..
  • On Wednesday, President Biden said he is willing to lower the proposed corporate tax increase amid pushback from Republicans and some moderate Democrats…

Want to know more click here go to source.

From -
Close
Generic selectors
Exact matches only
Search in title
Search in content
Search in posts
Search in pages

Site Language


By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close