With the economy starting to recover from the COVID-19 pandemic and investor concerns turning increasingly toward inflation, Dimensional Founder David Booth talked with Nobel laureate Eugene Fama about inflation and how investors should think about it in their portfolios. Excerpts from their conversation have been edited for clarity.
The second quarter’s economic surge encourages a full recovery to pre-pandemic GDP by the end of 2021. Additionally, the robust economic recovery belies difficulties in the labor market as jobs and unemployment both rise above expectations, and pent-up demand is driving inflation higher, which is certain to test the Fed’s rate targeting policy.
The Internal revenue Service (IRS) is mailing letters to some taxpayers who had claimed the 2020 Recovery Rebate Credit (RRC) and may be getting a different amount than they expected.
Gov. Larry Hogan has signed the Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families (RELIEF) Act of 2021 into law. The RELIEF Act will now provide more than $1 billion in direct stimulus and tax relief for Maryland working families, small businesses, and those who have lost their jobs due to the COVID-19 pandemic.
The federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will provide formal guidance on this matter in the next few days.
The American Rescue Plan Act of 2021 includes expanded unemployment benefits, increased child tax credits, additional small business relief, and sundry initiatives with tax implications for both individuals and businesses.
