Wednesday afternoon, the Fed indicated that interest rate hikes were off the table. Plus, the IRS has the 2021 tax filing deadline to May 15.
The Fed, porkulus bill, the IRS, etc. Cartoon by Garrison. Reproduced with permission and by arrangement with grrrgraphics.com. WASHINGTON – Two potentially positive bits of news emerged from Washington Wednesday afternoon. First, in a just-released Federal Open Market Committee (FOMC) report, the Fed indicated that significant interest rate hikes were off the table. At least for the foreseeable future. But this report was followed by news that the IRS has just extended the 2021 deadline for filing personal taxes by a month, moving it to May 15. Here’s the brief CNBC instant replay of the latest Fed report. “The Federal Reserve on Wednesday sharply ramped up its expectations for economic growth but indicated that there are no expected interest rate hikes through 2023 despite an improving outlook and a turn this year to higher inflation. “As widely expected, the policymaking Federal Open Market Committee also voted to keep short-term borrowing rates steady near zero, while continuing an asset purchase program in which the central bank buys at least $120 billion of bonds a month. “The key changes came in how central bankers view the economic road ahead and what impact that could have on policy. “‘Following a moderation in the pace of the recovery, indicators of economic activity and employment have turned up recently, although the sectors most adversely affected by the pandemic remain weak. Inflation continues to run below 2 percent,’ the committee said in its post-meeting statement.” As for that IRS income tax filing extension? America’s favorite government agency announced the news Wednesday. It’s geared to allow tax filers time to incorporate any effects from the Democrats’ latest Porkulus Bill – aka, the “American Rescue Plan Act (ARPA?) of 2021 – into their current returns before filing. Specifically, the IRS also provided some advice on filing amended tax returns if certain taxpayers received unemployment benefits in 2020. As in, “Don’t file an amended return if you’ve already filed your return for 2020.” Apparently, IRS advice for those situations will be forthcoming. I.e., it’s the usual “paperwork reduction act” madness.
