On The Money – Biden: America Should “Rest” on Prices

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Happy Tuesday and welcome to On The Money, your evening guide to everything related to your bills, your bank account and your results. Subscribe here: thehill.com/newsletter-signup.

Today’s big deal: President BidenJoe BidenEquilibrium / Sustainability – Climate, democratic emergencies indivisible A top House Democrat urges the Senate to abolish filibuster to pass voting rights on January 6. Former Biden transition advisers call for change in COVID-19 PLUS strategy seeks to reassure Americans about the cost of gasoline and freebies. We’ll also take a closer look at the President’s decision to stay with Jerome Powell as Chairman of the Federal Reserve.

For The Hill, we are Sylvan Lane, Naomi Jagoda and Aris Folley. Contact us at [email protected] or @SylvanLane, [email protected] or @NJagoda and [email protected] or @ArisFolley.

Let’s go.

President optimistic on gas and goods prices

President Biden, in his remarks Tuesday on the rising costs of goods and gas for Thanksgiving, argued optimistically that the economy is ready for the holiday rush.

The president said high gas prices are a problem in the United States and around the world. But he touted the Energy Department’s release of 50 million barrels of oil from the country’s strategic oil reserve, which the White House announced earlier on Tuesday.

“It’s a problem, not just here in the United States, but around the world,” Biden said in remarks to the White House, referring to the record cost of gas in Europe and Asia.

More info on the release of oil reserves:

  • Of the 50 million barrels released from the reserve, 32 million will eventually be returned there over the next few years once fuel prices fall in an attempt to ensure the reserve remains in storage. An additional 18 million barrels will be released as an acceleration of an oil sale that Congress had already authorized.

  • The announcement was made in concert with India, Japan, South Korea and the United Kingdom, which have all agreed to release oil from their own reserves.

  • Biden also asked the Federal Trade Commission to investigate whether the oil and gas industry has acted in illegal or anti-competitive ways that could result in higher gas prices for consumers.

Learn more about The Hill’s Alex Gangitano here.

LEAD THE DAY

Biden avoids Fed fight, disappointing progressive allies

President Biden avoided a battle for Federal Reserve leadership by disappointing progressive allies and sticking with Jerome Powell, whom the former President TrumpDonald TrumpProPublica reporter says movement to target government political opponents increased before Jan. 6 attack Briahna Joy Gray: Biden to ‘pay the piper’ for inaction midway through 2022 climate test Biden PLUS appointed Fed chairman four years ago.

Senate aides predict that Powell will easily have enough votes to secure confirmation of a second term at the top of the central bank and have warned that Biden would have had a much tougher fight on his hands had he chosen Lael Brainard instead , the only Democrat on the seven-member board. and the favorite of a number of progressives.

To read more about The Hill’s Alexander Bolton, click here.

TAX UPDATE

Biden plan would raise average household tax rate by more than $ 1 million: JCT

Households with incomes of at least $ 1 million would see their average tax rate rise in 2022 under the House Democrats’ Social Spending and Climate Bill, according to a corrected report released Tuesday by the Joint Committee on Taxation.

The average tax rate for these taxpayers would drop from 29.9% under the current law to 33.1%, according to the report.

The corrected report comes after the committee, the congressional non-partisan tax pointer, released a report on Friday that found the average tax rate in 2022 for taxpayers with incomes of $ 1 million or more would decline slightly. from 29.9% to 28.2%.

This discovery has caught the attention of some right-wing tax professionals. However, the committee said on Tuesday that it initially made a mistake in calculating average tax rates for 2022.

Learn more about the corrected JCT report here.

MONEY TO FLAMBER

Americans plan to spend slightly more on holiday gifts than in 2020: survey

Americans are expected to spend an average of $ 886 on vacation shopping this year, a slight increase from last year and an increase from 2019, when the average was just above $ 800, according to the latest Gallup poll published Tuesday.

Despite inflation which is causing the prices of many products to skyrocket, the holiday season is expected to be busier than ever. Retail sales in the United States during the season are expected to increase between 3.7% and 5.3% from a year ago, Gallup found.

“Many factors, including inflation and the pandemic, could influence how much consumers spend on gifts this season and where they ultimately buy,” Gallup reported. “But starting in November, Americans intended to spend a pretty significant amount that should translate into strong vacation sales for the US economy.”

Read more here.

Good to know

Following the failed last round of negotiations, Kellog’s has said it will move on to the next phase of its contingency plan, which is to hire a permanent replacement.

Here’s what else we have on our minds:

  • Dollar Tree announced on Tuesday that it was raising its price to $ 1.25.

  • Apple has filed a lawsuit against NSO Group, the Israeli spyware developer blacklisted by the Biden administration earlier this month, accusing the company of targeting and monitoring Apple users.

That’s all for today. Thanks for reading and check out The Hill’s Finances page for the latest news and coverage. Well see you tomorrow.



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