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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 wealthfigures 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.
White House press secretary Jen Psaki said on Friday that Biden rejected Sen. Shelley Moore Capito’s (R-W.V.) proposal to add about $50 billion in spending to the GOP’s infrastructure package but that he will meet with Capito again on Monday for more talks. Meanwhile, House Transportation Committee Chair Rep. Peter DeFazio (D-Ore.) introduced a surface transportation bill that would spend $547 billion over five years on roads, bridges and public transport.
JPMorgan Chase & Co. will resume political donations to politicians, but will withhold them from Republican lawmakers who voted to overturn Biden’s election win, according to an internal memo. The suspension of donations to those lawmakers will last through the next midterms, the memo said.
Retail traders, egged on by energetic chatter on Reddit’s forums, sent AMC Entertainment Holdings Inc. shares soaring earlier in the week, although the company said it would sell more than 11 million shares and warned investors against buying its stock, which did temper traders’ enthusiasm. But by Friday, AMC was up 83.4 percent on the week, while other meme stocks like GameStop Corp. and Bed Bath & Beyond Inc. also saw weekly gains.
Biden and Summers have spoken on the former Treasury secretary’s inflation concerns, according to people familiar with the matter, although White House officials hold that some degree of price increases is a normal part of the country’s economic recovery.