How will the Fed’s policy shift affect interest rates? Kathy Jones of Schwab reports on Federal Reserve Chair Jerome Powell’s new goals. Changes are also on the horizon for families transferring wealth. According to Alyse Reiser Comiter of Financial Planning, current estate and gift exemption amounts are due for an update. Employers may not be deducting payroll taxes as of Friday. Daniel Cassady looks into what this may mean for Social Security.

Federal Reserve Announces Inflation Goal Shift: What It Means For Investors — As expected, Federal Reserve Chair Jerome Powell announced a shift in policy that stems from a year-long review that the Fed has done. In a speech entitled “Navigating the Decade Ahead,” the key shift in policy is a move to an “average inflation” target instead of a precise 2% target. The change suggests that the Fed will likely maintain its zero-interest-rate policy for several more years until it sees inflation rise, rather than acting pre-emptively to address inflation expectations. Read more…

That 2026 Sundown Date For Estate And Gift Tax Exemptions? Don’t Count On It — Changes could be brewing when it comes to estate and gift tax exemption amounts — changes that could mean a considerable reduction in how much wealthy clients and their families can transfer to rising generations without taking a significant tax hit. Read more…

Trump’s Payroll Tax Deferment Plan Goes Into Effect — President Trump’s plan to defer payroll taxes was set into motion Friday. The Treasury Department was outlining how the executive action would work just four days before the attempt to provide an economic boost was set to take effect. Read more…

 

John R. Day, Bill Ennis, Stephanie Hall, and Matt Heller

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