Jun 03, 2024

I’ve been following the latest updates on consumer spending and inflation, and it seems that consumer spending is on the rise, contributing to faster price growth than what Federal Reserve officials had hoped for. There’s been a shift in the composition of spending, with more spending in categories where spending is “imputed” rather than based on actual transactions and observed prices. However, this hasn’t translated into slower inflation, as core consumer goods prices have been accelerating notably over the past few months.

The report also highlighted the persistent pressure on services and the statistical discrepancy between Gross Domestic Product (GDP) and Gross Domestic Income (GDI). It’s interesting to note that the gap between the interest you should be earning on your deposits and the interest your bank is paying essentially acts as a fee for the privilege of having a bank account. Overall, it’s an insightful look into how consumer spending and inflation are being influenced by various factors.

Another piece of news that caught my attention is the upcoming 6-month T-Bills auction on 6 June. The yields have been steadily declining, and there are questions about whether interest rates will continue to drop. This development could have implications for various investment options, such as T-Bills, Fixed Deposits, Singapore Savings Bonds, or Money Market Funds.

In addition, there’s news about the IRS Direct File tax filing option becoming permanent starting from the 2025 tax filing season. This move is expected to create direct competition with TurboTax and H&R Block, which could potentially impact taxpayers and tax preparation services. It’s an interesting development in the tax filing landscape that’s worth keeping an eye on.

Stay Well!