Economy
Interest rates hike by 75 points, largest increase since 1994
After a meeting of the Federal Open Market Committee led by Chairman Jerome Powell on Wednesday, the Federal Reserve raised interest rates by 75 basis points. The decision its “the single largest increase in nearly thirty yeas as inflation soars” writes National Review.
The group announced it intends to bring the rate to a range of 1.5 percent to 1.75 percent in the short-term. “Of the eight-member committee, seven voted in favor of the hike while one member, Esther George, President of the Federal Reserve Bank of Kansas City, voted against the increase, preferring that it be 0.5 percent instead.”
The hike represents the largest since 1994, when then-Chairman Alan Greenspan “led a similar increase in anticipation of high inflation during an economic recovery.” Inflation too has reached record highs, hitting its peak level since 1982, currently at 8.6 percent, according to the latest federal Consumer Price Index report (CPI).
Powell is in his second term after President Biden re-nominated him to the chairman’s post. Powell has said the Federal Reserve would do “whatever it takes” to curb inflation. However, the move will likely have detrimental implications for individual borrowing and will “likely lead to higher interest rates on loans of consumers and businesses.”
8.6 percent “is a figure for which the Biden Administration has received considerable criticism, with its policy actions – i.e., the nearly $2 Trillion American Rescue Plan’s Covid relief spending and ongoing efforts to transition U.S. energy supply away from fossil fuels – being directly cited as exerting demand-pull effects on consumer prices” reports National Review.
Banque Pictet, the private banking arm of the Pictet Group based in Switzerland, has admitted to conspiring with U.S. taxpayers to hide billions of dollars from the Internal Revenue Service (IRS) in over 1,600 secret bank accounts. The Justice Department revealed on Monday that Banque Pictet has agreed to pay over $120 million in restitution to the U.S. Treasury as part of a settlement.
The bank’s involvement in the tax evasion scheme spanned from 2008 through 2014, during which it conspired with American taxpayer clients to conceal more than $5.6 billion of the approximately $20 billion in U.S. assets. This led to an evasion of around $50.6 million in U.S. taxes, according to prosecutors.
Of the $5.6 billion concealed, the funds were distributed across 1,637 accounts, implicating more than 40% of the total 3,736 private accounts owned by U.S. taxpayers held by the bank. Banque Pictet reportedly assisted its American clients in hiding their undeclared accounts through various means, including the formation and administration of offshore entities. Undeclared accounts were then maintained in the names of these entities on behalf of U.S. taxpayer clients.
Jim Lee, Chief of IRS Criminal Investigation, emphasized the importance of the case in sending a strong message to those attempting to hide assets and income offshore. Lee stated, “This case should provide a clear message to others who try to hide their assets and income offshore. Offshore tax evasion is a priority for IRS Criminal Investigation.”
The settlement underscores the ongoing efforts by U.S. authorities to combat tax evasion and sends a clear warning to financial institutions and individuals involved in such illicit activities. As regulatory scrutiny intensifies globally, financial institutions face increasing pressure to ensure compliance with international tax laws and prevent their involvement in tax evasion schemes.
-
Israel5 days agoAs More Evidence Shows Hamas War Crimes, Biden Administration Continues to Gaslight Israel
-
Elections4 days agoVideotapes from Jan. 6 Committee Witness Interviews Vanish
-
National Security4 days agoISIS-Inspired Teen’s Sinister Plot Foiled: Lone Wolf Threat Neutralized in Las Vegas
-
Israel4 days agoMenorah lightings canceled around the world as towns remove Jewish symbols over Hamas war
