Janet Yellen Affirms 'Soft Landing' Scenario for US Economy
Janet Yellen, the US Treasury Secretary and former Chairman of the US Federal Reserve, is confident that the recent positive developments in the American economy indicate a successful 'soft landing.' Yellen specifically highlights the low inflation figures and the robust labor market as indicators of this favorable outcome.
Yellen asserts that the US economy has made significant progress over the past six months. She declares that the current state of affairs can be described as a 'soft landing' scenario, which occurs when measures implemented by the Federal Reserve, such as interest rate hikes, effectively curb inflation without triggering a recession.
Citing the latest labor market and inflation data, Yellen supports her claims by emphasizing the sustained strength of the labor market. She notes that the unemployment rate has consistently remained below 4% for 23 consecutive months, a remarkable feat not observed in the past 50 years. Additionally, the economy added 216,000 jobs in December, further contributing to its positive trajectory.
Yellen expressed her views in a recent X post, stating:
The American people, workers, and businesses have played a crucial role in steering us towards a soft landing. The President's economic agenda has provided them with the necessary tools for economic growth, including significant investments in infrastructure, clean technology, and semiconductors.
Yellen also acknowledged the significant progress made in curbing inflation over the past six months. Nevertheless, she acknowledged that further efforts are required to address inflationary concerns related to housing and food prices, which have remained high. She also highlighted that recent polls indicate a growing sense of optimism among Americans about their future.
Yellen's current statements align with her remarks from December, where she emphasized that while there is always a risk of a recession, she did not believe it to be particularly high at that time. She explained that people would gradually start feeling more positive about the economy over time.
What are your thoughts on Janet Yellen's assertion of a 'soft landing' scenario? Share your opinions in the comments section below.
Frequently Asked Questions
How does gold perform as an investment?
The supply and demand for gold affect the price of gold. Interest rates also have an impact on the price of gold.
Due to their limited supply, gold prices fluctuate. You must also store physical gold somewhere to avoid the risk of it becoming stale.
What is the best precious metal to invest in?
The answer to this question depends on how much risk you are willing to take and what type of return you want. Gold has been traditionally considered a haven investment, but it’s not always the most profitable choice. For example, if your goal is to make quick money, gold may not suit you. Silver is a better investment if you have patience and the time to do it.
If you don’t desire to become rich quickly, gold may be your best option. However, silver might be a better option if you’re looking for an investment that provides steady returns over long periods.
How much tax is gold subject to in an IRA
The fair market value at the time of sale is what determines how much tax you pay on gold sales. Gold is not subject to tax when it’s purchased. It’s not considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
Gold can be used as collateral for loans. Lenders look for the highest return when you borrow against assets. This often means selling gold. It’s not guaranteed that the lender will do it. They might keep it. They may decide to resell it. In either case, you risk losing potential profits.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. If you don’t plan to use it as collateral, it is better to let it be.
Is gold a good IRA investment?
Gold is an excellent investment for any person who wants to save money. You can diversify your portfolio with gold. But gold is not all that it seems.
It’s been used as a form of payment throughout history. It’s often referred to as “the world’s oldest currency.”
But gold is mined from the earth, unlike paper currencies that governments create. It’s hard to find and very rare, making it extremely valuable.
The supply and demand factors determine how much gold is worth. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. As a result, the value of gold goes up.
On the other hand, people will save cash when the economy slows and not spend it. This results in more gold being produced, which drives down its value.
This is why investing in gold makes sense for individuals and businesses. If you invest in gold, you’ll benefit whenever the economy grows.
Additionally, you’ll earn interest on your investments which will help you grow your wealth. In addition, you won’t lose any money if gold falls in value.
Who holds the gold in a gold IRA?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
Owning gold can also help protect against inflation and price volatility, but it doesn’t make sense to hold gold if you’re not going to use it.
If you plan on selling the gold someday, you’ll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
To find out what options you have, consult an accountant or financial planner.
Statistics
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item’s value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
bbb.org
irs.gov
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
How To
Investing in gold vs. investing in stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. This is because many people believe that gold investment is no longer profitable. This belief is due to the fact that many people see gold prices dropping because of the global economy. They think that they would lose money if they invested in gold. However, investing in gold can still provide significant benefits. Below we’ll look at some of them.
Gold is one of the oldest forms of currency known to man. There are records of its use going back thousands of years. It has been used as a store for value by people all over the globe. As a means of payment, South Africa and many other countries still rely on it.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. It is important to determine the price per gram you are willing and able to pay for gold bullion. You can always ask a local jeweler what the current market rate is if you don’t have it.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. So while the price of gold has declined, production costs haven’t changed.
The amount of gold that you are planning to purchase is another important consideration when deciding whether or not gold should be bought. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. However, if you are planning on doing so for long-term investments, then it is worth considering. It is possible to make a profit by selling your gold at higher prices than when you purchased it.
We hope this article has given you an improved understanding of gold investment tools. We recommend you do your research before making any final decisions. Only then can you make informed decisions.
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By: Sergio Goschenko
Title: US Economy Achieves ‘Soft Landing’ as Janet Yellen, US Treasury Secretary, Remains Optimistic
Sourced From: news.bitcoin.com/us-treasury-secretary-janet-yellen-declares-soft-landing-reached-americans-recovering-optimism/
Published Date: Mon, 08 Jan 2024 06:30:30 +0000
