U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve's 2% target and posting its largest annual gain since 1992, because of pent-up demand and supply constraints as the economy reopens.
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Consumer prices as measured by the personal consumption expenditures price index, excluding food and energy components, increased 0.7 per cent last month.
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WASHINGTON (Reuters) - U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve’s 2% target and posting its largest annual gain since 1992, because of pent-up demand and supply constraints as the economy reopens.
The strong inflation readings reported by the Commerce Department on Friday had been widely anticipated as the pandemic’s grip eases, thanks to vaccinations, and will have no impact on monetary policy. Fed Chair Jerome Powell has repeatedly stated that higher inflation will be transitory.
The U.S. central bank slashed its benchmark overnight interest rate to near zero last year and is pumping money into the economy through monthly bond purchases. It has signaled it could tolerate higher inflation for some time to offset years in which inflation was lodged below its target, a flexible average.
What You Need to Know
Jamie Cox weighs in on the 146-page package, which raises the RMD age and a whole lot more.
Those making catch-up contributions to retirement plans will have to do so on a Roth basis, he says, which has pros and cons.
But there s reduced tax penalty for those who fail to take an RMD.
The Securing a Strong Retirement Act of 2021 passed the House Ways and Means Committee on Wednesday. While it has a long way to go in the legislative process, the bill, dubbed the Secure Act 2.0, has the attention of advisors like Jamie Cox.