Our President & CEO, Daniel Genter, gives his opinion on the Federal Reserve interest tapering.
Quoted from CNN Business:
The market also seems to be growing confident that corporate taxes may not go up much —or even at all — anytime soon. That would be a gift to the Fed, too.Opposition to President Biden’s plan to raise the tax rate for businesses from key moderates on Capitol Hill, namely Democratic senators Joe Manchin and Krysten Sinema, could doom any chances of a significant increase.
“I don’t see a corporate tax rate hike coming now. There are too many fires in Washington,” said Dan Genter, CEO and chief investment officer of RNC Genter Capital Management.
Powell, who like most Fed members sticks to the mantra that the central bank is apolitical, would likely not comment on any tax proposal. But market observers think the Fed would have more wiggle room to taper and raise rates if it doesn’t having to worry about how investors might react to the prospect of higher taxes eating into profit margins.