What is Tapering and Why Is It Important?

Graph showing 10yr Bond Yield after tapering

You may have heard the term “tapering” if you’ve been following the news lately. The Federal Reserve (Fed) has many tools it can use to stimulate the economy, which includes purchasing bonds in the open markets. Tapering refers to the Fed cutting back on its bond purchases (i.e. “tapering down”). The term goes back to […]

The New Biden Tax Increase (And What to Do About It)

Biden Speech on Tax Increase

Matt Bacon         April 22, 2021 A big announcement came yesterday about regarding the new Biden tax increase. During a scheduled press conference, White House Press Secretary Jen Psaki announced that President Biden will propose raising taxes on the wealthy next week. The tax increases will be used to fund nearly $1 trillion in investments for […]

How the Biden Tax Plan Would Work

Oct 22, 2020       Matt Bacon Democratic presidential candidate Joe Biden is proposing sweeping changes to the tax code. The Biden Tax Plan would work to undo many of the Republican-backed tax cuts that were signed into law in 2017 as part of the Tax Cuts and Jobs Act (TCJA). This will result in higher taxes […]

Why the TikTok App Ban is Making Waves

Matt Bacon         Sep. 23rd, 2020   The Trump administration has railed against Chinese owned social media company TikTok in recent months citing grave national security concerns around data privacy. The rhetoric reached a fever pitch in mid-August with President Trump threatening a full TikTok app ban if corrective measures weren’t immediately taken. Despite a relatively […]

Coronavirus Aid, Relief and Economic Security (CARES) Act

March 27, 2020 Jeff Grodsky, Matt Bacon, Jim Stewart On Wednesday, the Senate unanimously passed a $2 trillion economic rescue plan that will provide relief to the U.S. economy as the Coronavirus rages on. The bill passed the House and was signed by the President this afternoon. This bill is by far the largest stimulus […]

Same Crisis, New Responses

March 24, 2020 Matt Bacon and Jim Stewart The new reality brought by the Coronavirus continues to rattle markets as the Dow and S&P continue to oscillate heavily. Apart from the rising number of infections there is little to report on the virus itself, but responses to containing it are evolving rapidly. California Governor Gavin […]

Tariffs and Trade

April 16, 2018 What is a Tariff? Quite simply a tariff is a tax on imports or exports. Tariffs are used by sovereign countries to protect domestic industries from competition and/or to generate revenues. They can be in the form of a fixed percentage of the price of a good or a fixed dollar amount. […]