The Senate Finance Committee will hold a hearing on the Internal Revenue Service fiscal 2022 budget on Tuesday. Why it’s worth watching: President Joe Biden pitched doubling the IRS workforce over the next decade and to increase the agency’s funding by $80 billion in an effort to catch tax cheats and help pay for his ambitious spending plans. We can expect Democrats to be broadly supportive of Biden’s plans — the IRS proposal hasn’t caused as much concern among the party’s moderates as has other pay-for proposals, such as a corporate tax hike. The panel’s ranking member, Sen. Mike Crapo (R-Idaho) has been skeptical of “tax gap” arguments before, writing to IRS Commissioner Charles Rettig last month on the issue.
No Federal Reserve Board events are scheduled ahead of the Federal Open Markets Committee meeting on June 15-16.
The big number to watch this week in econ data is the Consumer Price Index, coming out on Thursday. Why it’s worth watching: Calls from the Republican Party and even from top Democratic economist Larry Summers have urged the White House to watch for rising inflation, and everyone from the White House to the Fed will see how much CPI for May rises on Thursday. From the White House’s perspective, some degree of inflation is expected as the economy recovers from the pandemic, although officials have fended off criticism from policymakers on continued extra federal unemployment benefits and potential minimum wage hikes.
Quarterly household wealth figures from the Fed are also due out on Thursday. Why it’s worth watching: Household wealth has actually increased during the pandemic, despite the economic pain, because of stimulus checks that have helped buffer the savings of Americans who kept their jobs. Policymakers will be watching how long the growth in household wealth lasts, especially as government benefits wane and the economy reopens.