Good morning! The Federal Reserve left interest rates near zero. Meanwhile, some 90 million stimulus payments landed in bank accounts yesterday. And, the IRS has postponed the tax return due date to May 17. 

 

FINANCE

 

Fed: Interest Rates Remain Near Zero

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The Federal Reserve has said that it would keep interest rates near zero. Plus, the Fed noted that the “economic recovery remains far from complete” and reiterated that it would continue to support the still-recovering economy.

Here are the details: 

• The benchmark interest rate remains in the range of zero to 0.25%. 

• Previously, investors were concerned that the Fed would be forced to raise interest rates in a bid to tackle the spikes in inflation. 

• Hence, the Treasury bond yields climbed to a 13-month high of 1.67% early yesterday.

• However, following the central bank’s announcement, the ascent in yields mellowed and stocks rallied to fresh record highs. 

• According to the Fed’s consensus forecast, the central bank doesn’t expect any rate hikes in 2021. But, four Fed officials have projected higher interest rates in 2022. 

 

 

ECONOMY

 

Stimulus Payments in the Bank 

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For the third time in less than a year, the government is sending out stimulus payments to millions in the country. A total of $242.2 billion, or 90 million payments, have landed in bank accounts yesterday. 

Here’s what you need to know: 

• The Treasure Department said that an additional 150,000 payments should also arrive soon, in the form of paper checks. And, more will go out in the coming weeks. 

• But, the process hasn’t been all that smooth and there was even confusion about the timing of the payments. 

• While the IRS, which is pushing out the payments for the Treasury, has notified that the payments would arrive on Mar 17, a handful of online institutions credited their customers in advance of the payments’ arrival.

 

 

FINANCE

 

New Tax-Filing Deadline is Now May 17

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The IRS has postponed the April 15 tax-filing/payment deadlines to May 17, giving taxpayers breathing room as they struggle with tax law changes and the pandemic. 

Here’s what you need to know: 

• The tax-filing season had a late start and has been difficult for taxpayers dealing with the pandemic, economic disruptions, and late changes to the tax law. 

• In-person assistance, which can be particularly valuable for low-income filers, has been complicated as well. 

• With the extension, the deadline is pushed from April 15 to May 17 and automatically applies to individual returns and payments for 2020. According to the IRS, it doesn’t apply to 2021 estimated-tax payments. 

• However, some questions are still not addressed — including whether states will follow suit and extend their income-tax deadlines. 

 

 

APPENDIX

• Nokia will slash the size of its workforce — by cutting between 5,000 and 10,000 jobs or 11% of its workforce — over the next two years to free up money to invest in its 5G networks business. 

• Watch your back, Robinhood. Online trading firm eToro is going public in a $10.4 billion SPAC deal. 

• Google sees, Google follows. Google will lower its Play commissions globally from 30% to 15%, following Apple’s move last year. 

• A breather. Mastercard and Visa have postponed their plans to raise card fees until April 2022.

• Hello, childhood memory… again? Toys R Us has a new owner that plans to open stores in the U.S. again.