Some have been waiting for the Fed to lower interest rates and confirm it will ease monetary policy, which may result in lower home mortgage rates, credit card rates, auto loans, and so forth.
However, the Fed went another route at the close of its two-day meeting on May 1. They took an indirect approach to easing, and if you weren’t following closely, you may have missed it.
Chairman Powell will reduce the cap on maturing Treasury securities, meaning the current rate of $60 billion will now be $25 billion. To some, that indicates that the Fed is committed to lowering short-term interest rates later this year. To others, it suggests the Fed wants to keep the system operating smoothly and take some financial pressure off mid-sized banks. But to almost every economist, it's a signal that the Fed is moving toward easing and away from tightening.1,2
A slight policy change by the Fed after each meeting doesn’t amount to much. But when our team of professionals examine the Fed’s decisions over the past several meetings, we can start to see emerging patterns.
Fed Chair Powell said the new policy would start in June, so it’s too early to tell how that will influence the financial markets. It’s also too early to say whether the Fed’s pattern will lead to us suggesting portfolio changes for some clients.
At this point, sit tight, but please reach out to our office if you have any questions.
1. Reuters.com, May 1, 2024. “Fed announces reduction in balance sheet runoff pace.”
2. Bankrate.com, May 2, 2024. “The Fed’s latest meeting wasn’t just about interest rates. Here’s why you shouldn’t overlook its balance sheet announcement.”
- We are excited to announce that we will be relocating our home office from Acton, MA to Westford, MA. Our Woburn, MA and Epping, NH office locations remain open, and our main phone number (781-404-7009) and email contact information will remain the same. As of May 20, 2024, our new official home office address is:
Concord River Financial
319 Littleton Road, Suite 303
Westford, MA 01886
- Did you know? In addition to our Investment Management and Financial Planning services, we offer a variety of Value-Added Services to our clients, including a comprehensive client FAQ page and Market Insights that are posted weekly.
- If you have found value in the assistance, the personal bonds, and the trust that you and your advisor have formed, we would be honored if you could take a few moments to share your experienceas others have here. To submit a testimonial, please access our convenientTestimonial Submission webpageby entering the code ”8231”. We are grateful for your consideration!
Do You Need To Report Cash Payments?
If you receive a cash payment of over $10,000, you may be required to report it to the IRS. In this case, a cash payment includes U.S. or foreign currency and can also include cashier's checks, bank drafts, traveler's checks, or money orders.
In addition, cash payments to individuals can also include payments from companies, corporations, partnerships, or associations. For example, these could consist of payments from the following parties:
- Dealers of jewelry, furniture, boats, aircraft, automobiles, art, rugs, and antiques
- Pawnbrokers
- Attorneys
- Real estate brokers
- Insurance companies
- Travel agencies
This requirement refers to cash payments received as one lump sum, in two or more payments within 24 hours, as a single transaction within 12 months, or as part of two or more transactions within 12 months.
So, how do you report cash payments? Taxpayers should complete Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. You can file this form electronically or mail a copy to the IRS. You must submit Form 8300 within 15 days after receiving the cash payment.
*This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov
What are gift card scams?
Gift card scams are the newest threat to today's world where cybercriminals commit financial fraud by tricking people into buying gift cards and sending them the gift card information. This popular scam is a preference for cybercriminals because gift cards are an easy substitution for cash, they are easy to purchase, and once the fraud is complete it's difficult to track down the scammer.
The scams typically start when the cybercriminal contacts you with an urgent request for money. The scammer will imitate an IRS employee, tech support employee, or even a family member, and will tell you to go to a store (Target, Walmart, Walgreens, etc.) to purchase the gift card. After the gift cards are purchased, the cybercriminal will urge you to scratch off the panel on the back of the gift card, take a picture of the gift card information, and send them that picture to complete the financial fraud. Another example might be where someone who seems to be a family member or a friend will reach out to you asking for helping purchasing a gift card online. They will ask you to buy it for them and then claim to pay you back once you send over the gift card information.
Gift card scams can be easily avoided by following these best practices:
- Buy gift cards online directly from known and trusted sources.
- Proceed with caution on all urgent requests.
- Never send pictures or text messages to anyone that includes goft card information.
- Confirm with the gift card requestor in person or over the phone that they made this request before sending any money to them.
What do I do if I am a victim of a gift card scam?
If you’re the victim of a gift card scam, immediately contact the issuer of the gift card and report the scam to them. If you contact the issuer quick enough, you may be able to get a refund. Please be aware that some issuers may not provide a refund to the card.
They have not flesh, nor feathers, nor scales, nor bone. Yet they have fingers and thumbs of their own. What are they?
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Last Month's Riddle: The 22nd and 24th U.S. presidents had the same parents– yet the 22nd and 24th U.S. presidents were not siblings. Why?
Answer:The 22nd and 24th U.S. presidents were the same person - Grover Cleveland.