Janet Yellen's Assessment of the U.S. Economy
Janet Yellen, former Chairman of the U.S. Federal Reserve and current U.S. Treasury Secretary, believes that recent improvements in the American economy indicate that the country has achieved a soft landing. She points to low inflation figures and a robust labor market as indicators of this positive scenario.
Positive Signs Point to a Soft Landing
According to Yellen, the measures taken by the Federal Reserve, such as interest rate hikes, have successfully slowed down inflation without causing a recession. She emphasizes that the latest labor market and inflation numbers support this view. Yellen highlights that the labor market has remained strong, with the unemployment percentage staying below 4% for 23 consecutive months, a feat not witnessed in 50 years. Additionally, the economy added 216,000 jobs in December.
In a recent post, Yellen stated, "The American people, workers, and businesses have helped put us on a path to a soft landing. The President's economic agenda is giving them the tools they need to grow the economy, including historic investments in infrastructure, clean technology, and semiconductors."
Advances and Remaining Challenges
Yellen also acknowledges the significant progress made by the U.S. economic apparatus in achieving a substantial decline in inflation over the past six months. However, she notes that there is still work to be done regarding housing and food prices, which have remained high. She further mentions that polls indicate a growing optimism among Americans about their future.
These recent statements by Yellen align with her remarks from December, where she emphasized that while there is always a risk of recession, she did not consider it particularly high at that time. She believes that people will gradually start feeling more positive about the economy as time goes on.
What are your thoughts on Janet Yellen's assessment of the soft landing scenario? Share your opinions in the comments section below.
Frequently Asked Questions
What precious metals could you invest in to retire?
The first step to retirement planning is understanding what you have saved now and where you are saving money. If you don't know how much you currently have saved, start by taking an inventory of everything you own. This includes all savings accounts and stocks, bonds or mutual funds. It also should include certificates of Deposit (CDs), life insurance policies. Annuities, 401k plans, real-estate investments, and other assets like precious metals. To determine how much money is available to invest, add all these items.
If you are between 59 and 59 1/2 years, you might consider opening a Roth IRA. While a Roth IRA does not allow you to deduct contributions from taxable income, a traditional IRA allows for that. However, you will not be able take tax deductions on future earnings.
You may need additional money if you decide you want more. You can start with a regular brokerage account.
What are the pros and disadvantages of a gold IRA
A gold IRA is an excellent investment vehicle for those who want to diversify their holdings but don't have access to traditional banking services. It allows you to invest freely in precious metals, such as gold, silver and platinum until they are withdrawn.
The downside is that withdrawing money early will pay ordinary income tax on the earnings. But because these funds are held outside of the country, there is little chance of them being seized by creditors when you default on your loan.
A gold IRA is a great option if you want to own gold but not worry about taxes.
What are the best ways to choose an IRA.
The first step to finding an IRA for you is understanding your account type. This includes whether you are looking for a traditional IRA or Roth IRA. You should also know how much money your have available to invest.
The next step is to choose the best provider for you. While some providers offer both accounts, others specialize in only one.
Consider the fees that come with each option. Fees vary widely between providers and may include annual maintenance fees and other charges. For example, some providers charge a monthly fee based on the number of shares you own. Others only charge once per quarter.
What is the best precious-metal to invest?
High returns on capital are possible with gold investments. It protects against inflation as well as other risks. As inflation worries increase, gold prices tend to rise.
It's a good idea for you to purchase futures gold. These contracts guarantee you will receive a certain amount of gold at a fixed price.
However, gold futures aren't suitable for everyone. Some prefer physical gold.
They can also trade their gold easily with others. They can also sell it whenever they want.
Some people want to avoid paying tax on their gold. They purchase gold directly from governments to achieve this.
This will require several trips to your local Post Office. You must first convert any existing gold into coins or bars.
You will then need to obtain a stamp for the coins and bars. You then send them to US Mint. They melt the bars and coins into new coins.
These new coins and bars are stamped with the original stamps. These new coins and bars are legal tender.
If you buy gold from the US Mint directly, you won’t have to pay tax.
Which precious metal would you prefer to invest in?
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that 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)
- Silver must be 99.9% pure • (forbes.com)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
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How To
How To Buy Gold For Your Gold IRA
A term that describes precious metals is gold, silver and palladium. It is any element that has atomic numbers between 79 and 110 (excluding Helium), and which is valued because of its beauty and rarity. Precious metals include gold and silver. Precious metals can be used to make money, jewelry, industrial products, and art objects.
The price of gold fluctuates daily due to supply and demand. The demand for precious materials has increased dramatically over the last decade as investors seek to find safe havens in volatile economies. This increased demand has caused prices to rise significantly. However, the increasing cost of production has made some people concerned about investing in precious metals.
Gold is a reliable investment due to its rarity and durability. The value of gold is never lost, which is unlike many other investments. Plus, you can buy and sell gold without paying taxes on your profits. There are two ways you can invest in gold. You have two options: you can buy gold bars and coins, or you can invest in futures contracts.
In-dispute liquidity can be achieved with physical gold bars or coins. They are easy and convenient to trade or store. However, they are not very inflation-proof. If you want to protect yourself from rising prices, consider purchasing gold bullion. Bullion is physical gold that comes in different sizes and shapes. Some billions come in one-ounce pieces, while others come in larger sizes like kilo bars. Bullion is usually stored in vaults protected from theft and fire.
If you prefer owning shares of gold rather than holding actual gold, you should consider buying gold futures. Futures let you speculate about how gold's price might change. Buying gold futures exposes you to gold's price without owning the physical commodity itself.
For instance, if I wanted speculation on whether gold prices would go up or lower, I could buy a contract for gold. My position will change when the contract expires. It can be either “longer” or “shorter.” A long contract is one in which I believe that the price of gold will rise. I'm willing now to pay someone else money, but I promise I'll get more money at the end. A shorter contract would mean that I believe the gold price will fall. In exchange for making less money in the future, I am willing to accept the money now.
When the contract expires, I'll receive the amount of gold specified in the contract plus interest. By doing this, I can get exposure to the market price for gold without actually owning it.
Precious metals are great investments because they're extremely hard to counterfeit. Precious metals are more difficult to counterfeit than paper currency. It is because precious metals are hardier than paper currencies that they can be counterfeited by printing new bills.
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