If you have around 10 minutes to spare, Scott Santens at Humanity Forward has a fascinating look at one of the alternatives to the Child Tax Credit.
It seems unlikely that the enhanced child tax credit will be reinstated even though “its monthly cash payments of $250 to $300 per kid cut child poverty by a third, did not reduce employment, did not contribute to inflation, but did increase entrepreneurship, did decrease drug use, and did decrease the number of parents selling their plasma to feed their kids.”
But it seems like something that functions so perfectly should be. Is there a chance for the Family Security Act 2.0?
Inflation-related increases in a mortgage rate
The 30-year fixed-rate mortgage rate increased significantly from 2.78 per cent this time last year to 5.54 per cent in the week ending July 21 from 5.51 per cent the previous week.
Fears of a recession are driving the rate up, along with a dimming economic outlook and increasing inflation, however, volatility is still present after a significant reduction at the beginning of July.
According to calculations from Freddie Mac, the main issue in the housing market right now is affordability.
A buyer who put 20% down on a $390,000 house and financed the rest over 30 years would have been paying $1,279 a month if mortgaging last year and a whopping $1,779 this year at 5.54 per cent.
That’s $500 more every month, and you probably don’t need a calculator to figure that out.
Is it a wise idea for Tesla to have sold their bitcoin at this time?
“Tesla dumped a significant portion of its bitcoin assets,” the query reads. You ought to?”
Elon Musk, the owner of Tesla, is interested in cryptocurrencies, as you have probably already read. In February 2001, the company went long by purchasing $1.5 billion in bitcoin and announcing that it would accept payments in the electronic, non-government banked currency.
However, Tesla changed its tune in Q2 of this year, selling roughly $1 billion worth of stock, or 75% of its holdings, according to records.
The sell-off was done to maximise cash because of the uncertainties surrounding the covid lockdowns in China, according to Musk, who also added that “we are certainly open to expanding our bitcoin holdings in the future, so this should not be viewed as some verdict on bitcoin.”
According to Edward Moya, senior market analyst for the Americas at the foreign exchange trading firm OANDA, quoted by La Monica, while Tesla selling large amounts of bitcoin is unsettling and contributed to the end of a currency rally, the price of bitcoin depends on a lot more factors than Musk’s actions.
Although he doesn’t state it directly, it appears that the advice is to not allow this shift to alter your original plans for your cryptocurrency investments.
Chris Kline, in a letter to CNN Business, argues that “macro factors”—such as Fed rate hike choices and inflation—are playing a larger impact on bitcoin’s price.
The price movement of bitcoin is being impacted by larger institutions entering the market, which is why this crypto winter is distinct from past ones. Major institutions have embraced cryptocurrency in some way, and this is contributing to the recent volatility.
In 2022, the IRS will once again give the Child Tax Credit under the terms it did before the American Rescue Plan’s expansion.
The 2017 Tax Cuts and Jobs Act’s regulations stipulate that the credit’s value is lower and that more people are ineligible than they were the previous year (TCJA).
If Congress doesn’t move to amend the credit before then, these adjustments will remain in place until the fiscal year 2025.
The European Central Bank raises interest rates more than anticipated.
The first interest rate increase by the European Central Bank in eleven years has been anticipated for months.
The widespread assumption was that the eurozone’s policymakers would start out cautiously, much like the US Federal Reserve.
However, the common market reported 8.6 per cent inflation last week, which is 0.5 per cent higher than the annual reading from the previous month.
Increasing energy costs as a result of Russia’s invasion of Ukraine and ongoing COVID-19 supply chain issues have been major drivers.
The ECB chose to raise interest rates by half a percentage point as opposed to the previously suggested quarter-point increase to combat inflation.
Ford wants to focus its investment on electric vehicles and remove 8,000 salaried employees.
Ford recently stated that it would invest $3.7 billion in sites throughout the Midwest to increase its capacity for the production of electric vehicles.
By 2023 and by the end of 2026, the automaker hopes to produce 600,000 and more electric vehicles annually. Over 6,000 union jobs would also be created in the area as a result of the financial infusion.
Bloomberg News reports that 8,000 workers would be laid off as a result of the company’s shift to expanded EV production.
The salaried workforce, which includes the Ford Blue division established this spring to manage the internal combustion engine operations at Ford, is anticipated to experience layoffs. The specifics of the reduction have not yet been determined and may vary.
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The dollar has risen significantly versus practically all other major global currencies as the Federal Reserve raises interest rates, which has both advantages and disadvantages.
Market volatility persists as several other central banks work to stifle global inflation that is out of control.
On Thursday, the European Central Bank is anticipated to implement its first rate increase in more than ten years.
