President Joe Biden is open to several possibilities to pass his $4 trillion combined infrastructure plans, including breaking up his proposals into multiple bills, according to a White House official. Biden will host both Republican and Democratic congressional leaders next week at the White House to try and sell his plans. (Bloomberg)
Treasury Secretary Janet Yellen emphasized on NBC’s “Meet the Press” this weekend that under Biden’s proposed $6 trillion in spending, no family earning less than $400,0000 will “pay a penny more in taxes,” while Sen. Rob Portman (R-Ohio) insisted on the same program that Yellen is “just wrong on that.” Appearing on CBS’ “Face the Nation,” White House chief of staff Ron Klain repeated the Biden administration’s pledge, saying that “many more Americans will see their taxes go down if the president’s plan is passed than see them go up.” (Politico)
Greg Abel, vice chairman of Berkshire Hathaway Inc., will take over the company once Chairman and Chief Executive Warren Buffett is no longer leading it, Buffett confirmed to a media outlet. The news comes after Berkshire Vice Chairman Charlie Munger dropped a hint about the company’s succession plans at its annual meeting. (CNBC)
Perhaps the most striking difference between the middle class of 50 years ago and the middle class today is a loss of confidence — the confidence that you were doing better than your parents and that your children would do better than you. President Biden’s multitrillion-dollar suite of economic proposals is aiming to both reinforce and rebuild an American middle class that feels it has been standing on shifting ground.
Sen. Bill Cassidy said Republicans and Democrats are “a lot closer than you might think” on a bipartisan path for President Joe Biden’s infrastructure plan, if the plan fits into a traditional definition of infrastructure. “If you’re talking about a scope which is roads and bridges and internet and tunnels and airports and waterways, we can be pretty close,” the Louisiana Republican said on “Fox News Sunday.”
Investors have largely shrugged off President Biden’s proposal to raise taxes on investment income for wealthy Americans, as the stock market hovers near record highs after news of a strong economic rebound and blockbuster earnings reports from technology giants such as Apple and Amazon. The indifference is well founded, analysts say.
Joe Biden’s election has done little to slow the inexorable surge of wealth among U.S. billionaires. In the president’s first 100 days in office, against a drumbeat of calls for the rich to pay more in taxes, the 100 wealthiest Americans added a combined $195 billion to their fortunes, according to a Bloomberg analysis.
In 2017, congressional Republicans capped a tax break that benefits America’s highest-earning households and people with multimillion-dollar homes. Coastal Democrats have been trying to get it back ever since.
President Biden’s $1.9 trillion Covid-19 relief package was financed entirely with borrowed money. Now, he is proposing to spend another roughly $4.5 trillion on infrastructure and social programs—without adding to the red ink. “We can do it without increasing deficits,” Mr. Biden said in a joint address to Congress Wednesday night, detailing a series of tax increases on the wealthy and corporations to pay for programs ranging from building charging stations for electric cars to subsidizing child care.
Business leaders see much to like—and much that worries them—in President Biden’s first 100 days in office. Executives in manufacturing, automotive, construction and other industries say they see opportunity in the trillions of dollars Mr. Biden wants to spend to build infrastructure, boost domestic manufacturing, and curb greenhouse-gas emissions linked to climate change.
President Joe Biden’s promise to start narrowing income and wealth gaps underpins every part of his economic program, from almost $4 trillion in spending plans to the biggest tax increase in a generation.
Households in wealthy countries have amassed an unprecedented pile of savings to spend as parts of the global economy thaw after a year in suspended animation. But it isn’t clear whether consumers will seize that opportunity with enthusiasm.
Within a span of six hours last week, U.S. President Joe Biden and Federal Reserve Chair Jerome Powell embarked on a potentially historic course, pairing massive government spending and ultra-easy monetary policy in an effort not just to rescue the economy from a recession but to reset its trajectory. Powell’s motivation is to push the limits of a job market rebound as far as possible, a goal that is a step beyond what the U.S. central bank has done before and which he restated Wednesday in an emphatic pledge to get Americans back to work.
Household income rose at a record pace of 21.1% in March as federal-stimulus checks helped fuel an economic revival that is poised to endure with an easing pandemic. The 21.1% March surge in income was the largest monthly increase for government records tracing back to 1959, largely reflecting $1,400 stimulus checks included in President Biden’s fiscal relief package signed into law in March.
Alan Rappeport and Thomas Kaplan, The New York Times
In a normal year, Ron Whelan, vice president of Roger B. Kennedy Construction, receives one or two “Dear Valued Customer” letters from suppliers notifying him of price increases for certain materials. This year, a stack of 30 such warnings sits on his desk in Orlando, Fla., alerting him that things as diverse as lumber, drywall, aluminum and steel are going to cost 10 to 20 percent more.
David J. Lynch and Yeganeh Torbati, The Washington Post
Avis Budget Group’s stock price closed at an all-time high on Friday, a sign that rental car companies’ fleet-shrinking strategies are paying off financially — even as they leave consumers fuming. Major rental car operators last year sold off more than 770,000 cars as the pandemic crushed demand and kept Americans home, according to Jefferies Group, an investment bank.
Titans of finance, already threatened by President Joe Biden’s push for the biggest tax hike on wealthy Americans in decades, face another peril: Progressives are demanding action on a long-stalled requirement that Washington clamp down on Wall Street bonuses. Behind the scenes, consumer groups such as Public Citizen and Better Markets are reminding administration officials that the never-finished pay constraints are mandatory under the Dodd-Frank Act. Democrats — upset that the rules languished when Donald Trump occupied the White House — are also exerting pressure, arguing that years after the 2008 financial crisis, banks’ compensation practices continue to incentivize dangerous behavior.
Last year, amid protests over the murder of George Floyd, financial firms pledged billions of dollars to programs aimed at racial equity, including efforts to diversify their hiring and invest in Black businesses. And last month, Bank of America, BlackRock and Goldman Sachs were among hundreds of businesses and executives who signed a public letter opposing laws that would restrict voting across the country, especially for minority voters.
After Credit Suisse said it had lost nearly $5 billion over soured trades that a small unit of its investment bank made with Archegos Capital Management, worried employees peppered Thomas Gottstein, the chief executive, with questions. One wanted to know if bankers who weren’t involved would have to sacrifice pay over the losses.
Twenty-somethings dreaming of Excel all-nighters are facing their best prospects in years. HSBC Holdings Plc this week became the latest global investment bank pledging to hire a flock of junior bankers to help analysts and associates avoid burnout amid an avalanche of deals.
Apollo Global Management Inc. APO -0.29% made its name scoring double-digit returns on debt-laden buyouts. Under new Chief Executive Officer Marc Rowan, the firm’s future will become increasingly about finding ways to eke out a few percentage points more than corporate and government bonds pay.
TikTok is the place to go for new dances, viral taco recipes—and, now, financial advice. The big benefit of TikTok is that it allows users to dole out and obtain information in short, easily digestible video bites, also called TikToks.
Black homeowners are having a harder time catching up on missed mortgage payments than other borrowers, new federal research shows. The share of Black homeowners in forbearance stood at about 11% in mid-April, more than double the overall rate and that of white borrowers, according to the Federal Reserve Bank of Philadelphia.
The staggering rise of U.S. home prices is forcing thousands of aspiring buyers into grueling, often risky bidding wars, raising questions about whether the torrid housing market could be in a bubble. For nearly a year, the combination of low mortgage rates, a flood federal stimulus, lockdowns and teleworking — all sparked by the coronavirus pandemic — has fueled a rapid increase in demand for houses.
The stock-trading mania of early 2021 lifted revenue at Robinhood Markets Inc. to new heights. When its customers buy and sell stocks and options, Robinhood routes those orders to high-speed traders, which pay the startup brokerage for the right to execute many of those trades.
Tether, the crypto stablecoin backed one-for-one by fiat currencies, surpassed $50 billion in circulation, a sum that’s more than the insured deposits at all but 44 of the thousands of U.S. banks. It’s a remarkable milestone for a token that enjoys wide use as a method of payment in the crypto ecosystem, even as the eponymous private company behind it has endured regulatory scrutiny for its opacity on where it holds the enormous sum of reserves that back the token.
Bitcoin’s domination of total cryptocurrency market value is declining as its next-biggest rival Ether reaches the $3,000 milestone. The rise of Ether suggests there’s room for more than one winner among digital tokens as the sector evolves.
U.S. mutual-fund giant Fidelity Investments has drastically changed its view of what Jack Ma’s Ant Group Co. is worth after China’s regulatory crackdown on the financial-technology giant severely dented its growth prospects. The Boston-based asset manager, which was among an elite group of global investors that bought into Ant three years ago, marked Ant shares in several of its funds at prices that implied a $144 billion valuation for the company at the end of February, according to regulatory filings.
The restaurant industry is one of our country’s greatest sources of upward mobility. While the pandemic forced many operators to hit pause in 2020, the industry will bounce back — as long as Congress does not enact a misguided minimum wage mandate that hurts the employees it is meant to help.
President Biden’s first three domestic spending programs will give taxpayers a $5.7 trillion sticker shock, with advertised costs of $1.9 trillion for Covid-19 relief, at least $2 trillion for infrastructure, and $1.8 trillion for family benefits. Not seen are the hidden costs and burdens that will accompany the tax increases he proposes.
Sriya Anbil et al., Federal Reserve Board of Governors
We show that the segmented structure of the U.S. Treasury repo market, in which some participants have limited access across the segments, leads to rate dispersion, even in this essentially riskless market. Using confidential data on repo trading, we demonstrate how the rate dispersion between the centrally cleared and over-the-counter (OTC) segments of the Treasury repo market was exacerbated during the stress episode of September 2019.