Janet Yellen's Optimistic View on U.S. Economy
Janet Yellen, U.S. Treasury Secretary and former Chairman of the U.S. Federal Reserve, believes that the recent improvements in the American economy show that the country has achieved a soft landing. For Yellen, the recent low figures of inflation and the strength of the labor market are signs of this scenario.
Positive Signs of Economic Improvement
According to Yellen, the U.S. economy has shown significant improvement over the last six months. She declares that what they are witnessing now can be described as a soft landing. This term is used to describe a scenario where the measures taken by the Federal Reserve, such as interest rate hikes, effectively slow down inflation without causing a recession.
Yellen supports her statements by pointing to the latest labor market and inflation numbers. She highlights that the labor market has remained robust, with the unemployment percentage staying below 4% for 23 consecutive months, a feat not seen in 50 years. Additionally, the economy added 216,000 jobs in December.
In a recent post, Yellen stated, "The American people, workers, and businesses have helped put us on a path to a soft landing. The President's economic agenda is giving them the tools they need to grow the economy, including historic investments in infrastructure, clean technology, and semiconductors."
Addressing Remaining Challenges
Yellen also acknowledges that while the U.S. economy has made significant progress, there are still challenges to address. She points out that there is more work to be done to tackle inflationary pressures in the housing and food sectors, as prices in these areas have remained high. However, Yellen notes that recent polls indicate a growing sense of optimism among Americans about their future.
These recent remarks from Yellen are consistent with her statements in December, where she emphasized that although there is always a risk of a recession, she believed the risk was not particularly high at that moment. She expressed confidence that people would gradually start feeling better about the economy over time.
What are your thoughts on Janet Yellen's view that the U.S. economy has reached a soft landing scenario? Share your opinions in the comments section below.
Frequently Asked Questions
Who is entitled to the gold in a IRA that holds gold?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
You should consult a financial planner or accountant to see what options are available to you.
What are the fees associated with an IRA for gold?
$6 per month is the Individual Retirement Account Fee (IRA). This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
To diversify your portfolio you might need to pay additional charges. These fees vary depending on what type of IRA you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Most providers also charge annual management costs. These fees are usually between 0% and 1%. The average rate is.25% per year. These rates can be waived if the broker is TD Ameritrade.
How much money should my Roth IRA be funded?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. The account cannot be withdrawn from until you are 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, you cannot touch your principal (the original amount deposited). This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
You cannot withhold your earnings from income taxes. When you withdraw, you will have to pay income tax. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. This would mean that you would have to pay $3,500 in federal income tax. So you would only have $6,500 left. Because you can only withdraw what you have initially contributed, this is all you can take out.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
Two types of Roth IRAs are available: Roth and traditional. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. Your traditional IRA can be used to withdraw your balance and interest when you are retired. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs don't allow you deduct contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal required, unlike a traditional IRA. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
Statistics
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
bbb.org
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
irs.gov
finance.yahoo.com
How To
Guidelines for Gold Roth IRA
Starting early is the best way to save for retirement. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. It is essential to save enough money each year in order to maintain a steady growth rate.
Also, you want to take advantage tax-free options such as a traditional 401k, SEP IRA or SIMPLE IRA. These savings vehicles enable you to make contributions while not paying any taxes on the earnings, until they are withdrawn. This makes them a great choice for people who don’t have access employer matching funds.
It's important to save regularly and over time. You may not be eligible for any tax benefits if your contribution is less than the maximum allowed.
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By: Sergio Goschenko
Title: Janet Yellen Declares U.S. Economy Reached ‘Soft Landing' Scenario
Sourced From: news.bitcoin.com/us-treasury-secretary-janet-yellen-declares-soft-landing-reached-americans-recovering-optimism/
Published Date: Mon, 08 Jan 2024 06:30:30 +0000
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