Friday, January 21News That Matters

Tag: Stimulus (Economic)

Tax Season 2022: What to Know About Child Credit and Stimulus Payments

Business
But others may urge filers to use the amounts shown in their records, if they have documentation — like a bank statement — to show that they are accurate. That, however, could cause the I.R.S. to flag the return for review, delaying the entire refund — not just the amount tied to the child tax credit, said Erin M. Collins, the national taxpayer advocate. Ms. Collins heads the Taxpayer Advocate Service, an independent agency representing taxpayers inside the I.R.S.One option could be to file a return using the I.R.S. numbers, then file an amended return later with the amounts documented in the filer’s records. Filers would eventually get the correct amount from the credit, without delaying their entire refund.But Eric Smith, an I.R.S. spokesman, advised against that approach because the age...
Fed Could Raise Rates 3 Times in 2022 and Speeds End of Bond-Buying

Fed Could Raise Rates 3 Times in 2022 and Speeds End of Bond-Buying

Business
Federal Reserve policymakers moved into inflation-fighting mode on Wednesday, saying they would cut back more quickly on their pandemic-era stimulus at a moment of rising prices and strong economic growth, capping a challenging year with a policy shift that could usher in higher interest rates in 2022.The central bank’s policy statement set up a more rapid end to the monthly bond-buying program that the Fed has been using throughout the pandemic to keep money chugging through markets and to bolster growth. A fresh set of economic projections released on Wednesday showed that officials expect to raise interest rates, which are now set near-zero, three times next year.“Economic developments and changes in the outlook warrant this evolution,” Jerome H. Powell, the Fed chair, said of the decis...

How Tech Is Helping Poor People Get Government Aid

Technology
Sometimes barriers to aid are created deliberately. When Florida’s unemployment system proved unresponsive at the start of the pandemic, Gov. Ron DeSantis told CBS Miami last year that his predecessor’s administration devised it to drive people away. “It was, ‘Let’s put as many kind of pointless roadblocks along the way, so people just say, oh, the hell with it, I’m not going to do that,’” he said. (Mr. DeSantis and his predecessor, Rick Scott, are both Republicans.)Other programs are hindered by inadequate staffing and technology simply because the poor people they serve lack political clout. Historically, administrative hurdles have been tools of racial discrimination. And federal oversight can instill caution because states risk greater penalties for aiding the ineligible than failing t...

A Top Official Says the Fed Will ‘Grapple’ With a Faster Bond-Buying Taper

Business
John C. Williams, president of the Federal Reserve Bank of New York, said the latest variant of the coronavirus could prolong the bottlenecks and shortages that have caused inflation to run hotter than expected, and is a risk Fed officials will assess as they “grapple” with how quickly to remove economic support.It is still too soon to know how the Omicron variant, which public health officials in southern Africa identified just last week, will affect the economy, Mr. Williams said Tuesday in an interview with The New York Times. But if the new version of the virus leads to another wave of infections, it could exacerbate the disruptions that have caused prices to rise at their fastest pace in three decades.“Clearly, it adds a lot of uncertainty to the outlook,” Mr. Williams said of the new...
Mortgage Bills Are Coming Again. $10 Billion in Aid May Arrive First.

Mortgage Bills Are Coming Again. $10 Billion in Aid May Arrive First.

Business
“It all comes out of savings, and that is kind of dwindling,” she said.Each program sets its own rules, including how long it provides aid, the amount per household and the expenses covered. New York, for example, will provide up to $50,000 for costs including mortgage payments, utilities, broadband service and delinquent property taxes, with payments going directly to loan servicers, utility providers or tax authorities.Updated Nov. 18, 2021, 12:53 p.m. ETThe Ho-Chunk Nation plans to use much of the $3 million it received on heating costs, Mr. Whitegull said. “The majority of these funds are to be used for utility payments, natural gas, propane and wood,” he said. “The primary sources of heating.”That flexibility is important because of the success the federal government has had help...

Japan’s Economy Shrinks, but Outlook Is Brighter as Virus Ebbs

Business
Japan’s economy continued to wobble in the third quarter of 2021, tipping back into contraction, as the country struggled to find its economic footing in the face of coronavirus restrictions and a supply chain crunch that hit its biggest manufacturers.In the July-to-September period, the country’s economy, the third largest after the United States and China, shrank by an annualized rate of 3 percent, government data showed on Monday. The result, a quarterly drop of 0.8 percent, followed a slight expansion in the previous three-month period, when economic output grew at a revised annualized rate of 1.5 percent, or a quarterly rate of 0.4 percent.But brighter days may be ahead, at least in the near term.Japan now has one of the highest vaccination rates among major nations, and it has lifted...
India’s Stock Market is Soaring, Luring Investors at Home and Abroad

India’s Stock Market is Soaring, Luring Investors at Home and Abroad

Business
Until the pandemic, India’s stock market was like another world that Dilip Kumar never had a reason to visit. But like so many other people around the world who were stuck at home, he began to see it as the place to be.Mr. Kumar, a proposal administrator at an engineering company in New Delhi, set up a free stock trading account through Zerodha, India’s largest online brokerage firm, and plowed some of his savings into Indian Railways as well as a clothing retailer and a cinema chain.“I invested in all the things I was using daily,” he said. Since then, he’s gotten “a big return in quick time” — more than doubling his money in a little over a year.Plenty of others want in on the action.India’s booming stock market is drawing both local novices and global investors to shares of the financia...
Fed Expected to Announce Plan to Slow Bond Buying Amid Rapid Inflation

Fed Expected to Announce Plan to Slow Bond Buying Amid Rapid Inflation

Business
Jerome H. Powell, the Federal Reserve chair, is on the cusp of accomplishing something that would have seemed like a victory a year ago: Central bankers are expected to announce a plan to wean the economy off their asset-buying program on Wednesday without roiling markets, a delicate maneuver that was in no way assured.Instead, Mr. Powell and his colleagues face pressing questions about their next steps.Inflation is running at its fastest pace in roughly three decades, and hopes that the jump in prices will quickly fade have dimmed as supply chain snarls deepen and fuel costs rise. Wages are increasing swiftly, and consumers and businesses are coming to expect faster price increases, pumping up the risk that high inflation will become a fixture as employers and workers adjust their behavio...

As Democrats Trim Spending Bill, Some Americans Fear Being Left Behind

Technology, World
WASHINGTON — Democrats in Congress are curbing their ambitions for President Biden’s economic agenda, and Jennifer Mount, a home health care aide, worries that means she will not get the raise she needs to pay more than $3,000 in medical bills for blindness in one eye.Edison Suasnavas, who came to the United States from Ecuador as a child, has grown anxious about the administration’s efforts to establish a pathway to citizenship, which he hoped would allow him to keep doing molecular tests for cancer patients in Utah without fear of deportation.And Amy Stelly wonders — thanks to a winnowing of Mr. Biden’s plans to invest in neighborhoods harmed by previous infrastructure projects like highways that have harmed communities of color — whether she will continue to breathe fumes from a freeway...
Racial Bias Skewed Small-Business Relief Lending, Study Says

Racial Bias Skewed Small-Business Relief Lending, Study Says

Business
But Sergey Chernenko, an associate professor of finance at Purdue University’s Krannert School of Management, who was not involved in Dr. Howell’s research, said the new paper aligned with his own findings on race-based gaps in Paycheck Protection Program lending. At an economic conference next month, he will present a paper that concluded that Black-owned businesses were disproportionately left out of the relief program.“This fits very well with and complements our finding that minority-owned businesses were less likely to get loans because of racial bias, and to the extent that they do get them, they’re more likely to get them from fintechs than banks,” Dr. Chernenko said.Updated Oct. 11, 2021, 6:41 p.m. ETThe government designed the Paycheck Protection Program to be virtually risk-...