As of 11:31 pm 9 November 2020, U.S. Treasury rates and Federal Funds rates are as follows:
Fed Funds Rate: 0.08%
Federal Reserve Target: 0.25%
Prime Rate: 3.25%
Major political/legal event in the United States:
Biden launches transition website
Presumptive president-elect Joseph R. Biden has launched a transition website that describes his initial initiatives he plans to address upon taking office in January 2021. Mr Biden appears prepared to engage in a level of spending to address faults and inequities in the American economic infrastructure that were in place prior to the Covid pandemic. Spending initiatives include:
- Providing state, local, and tribal governments with financial assistance;
- Extending Covid crisis unemployment insurance to people out of work;
- Provide a financial package for small businesses and entrepreneurs;
- Creation of a public health corps that puts the unemployed to work fighting the pandemic.
No discussion has been provided by the transition team yet on the costs of these packages and the impact they may have on money supply expansion/contraction, trade, or foreign exchange rates.
Treasury announces tax deduction for pass-through entities
Today, the U.S. Department of the Treasury announced rule changes that clarify that State and local income taxes imposed on and paid by a pass-through entity are allowed as a deduction by the pass-through entity in computing its non-separately stated taxable income or loss for the taxable year of payment.