Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.
The unemployment rate came in today hitting the magic number “7”. That is 7%. The last time it’s been this low was 2008 and we all know what happened then. But the big question these days is what happens now?
That 7% is the first of two numbers singled out by the Federal Reserve a few years back as being the key to ending QE. The big taper everyone wants to see. So far today, the talk is positive about job growth and a higher participation rate. Basically, there were more people working or looking for work and the unemployment rate still went down. It wasn’t a huge jump but still a good sign.
So let the taper begin, right?
Not so fast. There’s still the second number the Fed wants to see. Inflation is only at 1.1% for the year. It’s the big question mark and a far cry from the 2.5% they want. So the 2013 QE taper is officially off the table. As it should be with a new Fed chair taking the helm in January. The last thing this market needs is mixed signals from a Fed chair transition.
Cyber Monday is officially the biggest “rip off the government” day of the year. Seriously! How many of you go through your Cyber Monday holiday shopping receipts and send in the taxes you owe on those items?
To be fair, if you don’t live in a state with sales tax, you’re off the hook. But those that do are supposed to mail in a check when the online retailer doesn’t collect sales tax for the state.
Of course, a few states now have laws in place so they get paid. New York is one. Illinois tried and failed with its online tax law. And the Marketplace Fairness Act is slowly rolling through Congress now. Either way, this time next year, your online shopping bill could be higher thanks to taxes. Just in time to have those purchases delivered by a drone.