What happened this week
U.S. stock futures are fractionally higher early Monday, this is a complicated week for investors as the markets await several events in the fight against inflation and anticipate the outlook for 2023. On Tuesday, the November consumer price index will be released, and traders will be looking for a sign that inflation is slowing. Also on Tuesday the Federal Reserve has a two-day meeting starting. The central bank is expected to announce another rate hike on Wednesday, however it is widely expected to be 50bp a milder hike in comparison to the previous moves by the Fed. Citi Global Wealth Management speculated over the weekend that the U.S. will likely tumble into a "mild" recession next year that sees unemployment top 5%. The group said that the economy could lose an estimated 2 million jobs in 2023 pushing the jobless rate to 5.25%. The Federal Reserve has been raising interest rates at the most aggressive pace since the 1980s trying to fight inflation, they already have approved six straight rate hikes.
Americans who made money online this year will face new challenges when they file their taxes in 2023, beginning next year, taxpayers must report to the IRS transactions of at least $600 that are received through payment apps like Venmo, PayPal and Cash App. Previously small businesses had a $20,000 threshold for reporting to the IRS but now a single transaction over $600 will trigger the tax form. The change is intended to crack down on Americans evading taxes by not reporting their full income. Roughly one in four Americans take in extra income on the side by selling something online, renting their home or using a digital platform to do work, all of which will now come under taxation.
Looking ahead at this week:
Mon Dec 12th: NY Fed 1yr and 5yr Inflation Expectations
Tues Dec 13th: Nov CPI
Wed Dec 14th: FED FUNDS RATE ANNOUNCEMENT
Jerome Powell Press Conference
Thurs Dec 15th: Initial Jobless Claims, Retail Sales, Industrial Production Index
Fri Dec 16th: S&P US Manufacturing PMI
