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The Congress on Wednesday said the <keyword id="19900449" type="General" weightage="20" keywordseo="government" source="keywords">government</keyword>'s proposal of giving individuals the option to choose between two tax rates for long-term capital gains (<keyword id="6357448" type="General" weightage="20" keywordseo="LTCG" source="Orion">LTCG</keyword>) tax on properties is not enough. It should also allow <keyword id="21006654" type="General" weightage="100" keywordseo="indexation-benefits" source="keywords">indexation benefits</keyword> for other forms of <keyword id="20044873" type="General" weightage="20" keywordseo="savings" source="keywords">savings</keyword> such as <keyword id="19905382" type="General" weightage="20" keywordseo="stocks" source="keywords">stocks</keyword> and <keyword id="19975805" type="General" weightage="20" keywordseo="fixed-deposits" source="keywords">fixed deposits</keyword>. Professionals' Congress Chairman Praveen Chakravarty accused the government of "betraying" the middle and salaried class in the Union Budget through the removal of indexation and higher taxes on their savings and <keyword id="22703183" type="General" weightage="20" keywordseo="investment-gains" source="keywords">investment gains</keyword>. "On 23rd July, Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword> presented the government's budget in Parliament. We welcomed certain aspects but we strongly opposed many parts of the budget. We welcomed the fact that the FM took some ideas from the Congress party's manifesto such as the employment linked incentive (ELI) scheme, the Apprenticeship Act and removing Angel tax," Chakravarty said at a press conference at the AICC headquarters here. Among other things, we strongly opposed what the finance did to the middle class and salaried professionals, he said. Leader of the Opposition Rahul Gandhi in his response to the Budget in Parliament categorically said that this was a "betrayal of the middle class" through removal of indexation and higher taxes on their savings and investment gains, Chakravarty pointed out. "He (Gandhi) had promised to fight for the middle class on this issue. This issue affected nearly 7 crore Indians who filed income taxes, owned or aspire to own a home and invest their savings. In this budget, effectively, through removal of indexation and increase in capital gains taxes, the taxes of salaried professionals through investment gains went up dramatically," he said. Already, the middle class and the salaried professionals are bearing the brunt of taxation under the Modi government because for the first time in India, total income taxes paid by middle class individuals are higher than taxes paid by rich corporates, Chakravarty said. There were huge protests on social media and in business events in cities like Mumbai where professionals came out spontaneously to protest, he said. Chakravarty said the <keyword id="22703184" type="General" weightage="20" keywordseo="All-India-Professionals-Congress" source="keywords" meta.keywordsubtype="org" meta.entityname="All India Professionals' Congress" meta.hostid="261" meta.entityid="All India Professionals' Congress">All India Professionals' Congress</keyword> and the Congress Party launched a campaign to 'Bring Back Indexation' with a petition asking people to sign it. "We had nearly 12,000 people who signed the petition in just one day since its launch. Yesterday, the government of India announced a rollback of indexation of property gains by giving individuals the option to continue with indexation benefits. We welcome this. This is a victory to the 7 crore people that file income tax," he said. "But this is not enough. We urge the government to allow indexation benefits for other forms of savings too such as stocks, debt, fixed deposits and so on," Chakravarty asserted. More importantly, this is a testament to middle class power and the power of democracy, he said. "When professionals come together and raise their voice, it will be heard. This is also proof of what a strong Opposition and a concerted and united effort can achieve for the people of India. The AIPC will continue to raise issues that impact the middle class working professionals," Chakravarty said. His remarks come a day after the government proposed significant relief for individuals who bought houses before July 23, 2024, by giving them the option to choose between two tax rates for long-term capital gains (LTCG) tax. The Budget 2024-25 had proposed to lower the LTCG from 20% to 12.5% but removed the indexation benefits. The new rates have come into effect from July 23, 2024. The indexation benefit allowed the taxpayers to compute gains arising out of the sale of capital assets after adjusting for inflation. The tax experts had said that the proposed changes in the Budget would raise the LTCG tax burden. As per the amendments to Finance Bill, 2024, circulated to the Lok Sabha members on Tuesday, individuals or HuF who bought houses before July 23, 2024, can compute his/her taxes under the new scheme (@12.5% without indexation) and old scheme (@20% with indexation) and pay such tax which is lower of the two. After the Budget presentation, the Income Tax department said that 'substantial tax savings' are expected for a vast majority of taxpayers due to a reduction in the long-term capital gains tax (LTCG) rate in the real estate sector. As per the changes brought in the 2024-25 Budget, the government has retained the indexation benefit for the taxpayers on properties bought or inherited before 2001.

Allow indexation benefits for savings such as stocks, fixed deposits: Cong to govt

<keyword id="20762025" type="General" weightage="100" keywordseo="silver-prices" source="keywords">Silver prices</keyword> have reached a significant milestone on Monday, touching Rs 1,00,000 on the Multi Commodity Exchange (MCX) for the March contract. According to the experts, this surge is being driven by escalating <keyword id="19955176" type="General" weightage="20" keywordseo="geopolitical-tensions" source="keywords">geopolitical tensions</keyword> in the Middle East, actions by China, and uncertainties related to the upcoming U.S. elections. These global risks are pushing silver prices to fresh all-time highs, as investors seek <keyword id="21286754" type="General" weightage="20" keywordseo="safe-haven-assets" source="keywords">safe-haven assets</keyword> amidst the growing instability. "Silver prices have aligned with expectations, and we anticipate a potential rally towards the usd 40 mark in the next six months. <keyword id="23623786" type="General" weightage="20" keywordseo="MCX-March-contract" source="keywords">MCX March contract</keyword> silver tested Rs 1 lakh, as geopolitical tensions are expected to continue supporting its safe-haven appeal. Additionally, high ETF investments and China's economic support contribute to a positive outlook. With <keyword id="23623788" type="General" weightage="20" keywordseo="gold-silver-ratio" source="keywords">GOLD SILVER RATIO</keyword> dropping towards the 80 level, it is likely to outperform gold. We expect silver to reach Rs 1.3 lakh by March 2025" said Ajay Kedia, Director of <keyword id="23623787" type="General" weightage="20" keywordseo="Kedia-Advisory" source="keywords" meta.keywordsubtype="org" meta.entityname="Kedia Advisory" meta.hostid="261" meta.entityid="Kedia Advisory">Kedia Advisory</keyword>. Silver remains strong in the market, with industrial demand expected to further boost prices. Analysts predict that silver could soon approach the USD 40 mark, as demand continues to rise. The metal plays a key role in industries such as electronics, solar energy, and manufacturing, making it highly sought after for both investment and practical purposes. In the commodity markets, contracts refer to agreements to buy or sell a specific quantity of a commodity at a predetermined price on a future date. These contracts are standardized and traded on exchanges like MCX. Traders use them to hedge against price fluctuations or to speculate on price movements. For instance, in the case of silver, the March contract represents an agreement to trade silver at a fixed price in March, allowing traders to lock in prices now to avoid future volatility. The ongoing geopolitical tensions and global risks are driving the prices of commodities like silver, as investors look for stability in uncertain times. The surge in silver prices reflects both the increasing demand for industrial use and its value as a safe-haven asset. With the global outlook remaining uncertain, silver could see further gains in the coming months.

Silver touches Rs 1 lakh mark on MCX march contract

<ul class="summary-list"><li>Goldman Sachs reported third-quarter earnings on Tuesday that beat analysts' expectations.</li><li>The investment bank posted $12.7 billion of revenue and almost $3 billion of net earnings.</li></ul>Goldman Sachs reported third-quarter earnings on Tuesday that beat Wall Street's expectations, sending its stock up as much as 3% in premarket trading.The investment bank generated $12.7 billion of net revenue, a 7% increase from the same period last year. It also cut its operating expenses by 8%, fueling a 45% surge in net income to $2.99 billion. Earnings per share were $8.40, exceeding Alphasense's consensus estimate of $6.71.Net revenues rose 7% year over year in the global banking and market division, fueled by a 20% surge in investment banking fees to $1.9 billion. The fee jump reflected a sharp increase in net revenues from debt underwriting amid strong leveraged finance and investment-grade activity, and higher net revenues in equity underwriting driven by secondary offerings.The asset and wealth management segment saw a 16% rise in net revenues as it collected record quarterly management and other fees. Moreover, assets under supervision grew by $169 billion last quarter to a record $3.1 trillion.CEO David Solomon said in the earnings release: "Our performance demonstrates the strength of our world-class franchise in an improving operating environment. We continue to lean into our strengths – exceptional talent, execution capabilities and risk management expertise – allowing us to effectively serve our clients against a complex backdrop and deliver for shareholders."He had struck a cautious tone at a Barclays conference in September, per a transcript provided by AlphaSense, warning that Goldman's trading unit was trending 10% lower than a year earlier largely due to fixed-income weakness.Solomon had also warned of a roughly $400 million blow to pre-tax earnings from the bank shifting away from its credit card partnership with General Motors and selling its seller financing loans.Meanwhile, Bank of America's third-quarter earnings showed its revenues were almost flat year on year at $25.3 billion. Higher non-interest expenses pushed its net income down 12% to $6.9 billion.CEO Brian Moynihan said it was another good quarter with "solid earnings results, delivering higher average loans and our fifth consecutive quarter of sequential average deposit growth."Bank of America stock was up 1.7% in premarket trading at the time of publication.

Goldman Sachs beats Wall Street forecasts as investment-banking fees surge 20%

<ul class="summary-list"><li>Fixed assets are noncurrent assets that companies will use for more than a year.</li><li>Common examples of fixed assets include land, factories, and machinery.</li><li>Analysts may look at fixed assets and related financial ratios when comparing companies.</li></ul>A fixed <keyword id="12211591" type="UNKNOWN" weightage="60" keywordseo="asset" source="Orion">asset</keyword> is an accounting term that's used to distinguish between assets that will be quickly used up (i.e., current assets) and <a href="https://www.businessinsider.com/what-are-assets" target="_blank" rel="noopener">assets</a> that will provide value for a longer period. A company's fixed assets may include the land, machinery, and other tangible equipment that it will use to create the products and services it sells. <h2>What are fixed assets?</h2>Fixed assets are tangible long-term assets that a business plans to use for more than one operating cycle. Mike Zeiter, a CPA/PFS and CFP who runs <a href="https://www.zeitercpa.com/" target="_blank" rel="noopener">Zeiter Tax Services</a>, says generally, the easiest way to determine if something is considered a fixed asset is if it will last for more than one year. Fixed assets are contrasted by current assets, which get used up within a single operating cycle. For example, a toy company may buy an assembly machine that will last 20 years (a fixed asset) and use it to combine toy parts (current assets) to create the toys it sells. Fixed asset generally refers to tangible assets as opposed to intangible noncurrent assets, such as patents, trademarks, and goodwill. <h2>How fixed assets work</h2>Fixed assets are also called noncurrent assets, long-term assets, or long-lived assets, and they're often listed under the property, plant, and equipment (PP&amp;E) section of a company's balance sheet. To qualify as a fixed asset, an asset must be:<ul><li>Noncurrent </li><li>Not sold directly to customers</li><li>Used for more than one operating cycle (often, a year)</li></ul>Most tangible fixed assets also depreciate over their lifetime — land is an exception. Rather than taking a write-off for the cost of the fixed asset when it's first bought, the company will take deductions and lower the value of the asset over time. For example, if the toy company's assembly machine cost $20,000, is expected to be useful for 20 years, and will then be worth nothing, the company may deduct $1,000 each year. Note: A fixed asset has an estimated useful life, the period during which the business can use it for its intended purpose, and salvage value at the end of its useful life. These can determine how much the business can deduct each year. Businesses can't depreciate land because land doesn't get used up.<h2>What types of fixed assets might a company have? </h2>A company's fixed assets could depend on the type of company and the products or goods it sells. Zeiter says some common examples include: <ul><li>Buildings</li><li>Computers</li><li>Equipment</li><li>Office furniture</li><li>Land</li><li>Vehicles</li></ul>However, whether something is classified as a fixed asset can also depend on how the company uses it. For example, a data storage company might purchase computers that it will use to sell services to clients for years to come. The computers are a fixed asset in this case. But the company that builds and sells the computers wouldn't consider them a fixed asset. <h2>How do fixed assets impact a company's financial statements?</h2>"There are three primary financial statements that all businesses use. The income statement, balance sheet, and cash flow statement," says Ziete. "[And] there are a few ways that fixed assets impact financial statements." Understanding where they're recording and how they may impact or reflect aspects of a business's finances can be important for analyzing a company. <h3>The balance sheet</h3>A company's balance sheet shows an overview of the company's assets, liabilities, and shareholder equity. "Fixed assets are recorded on the balance sheet as part of the company's assets when they are put into service," says Zeiter.The tangible fixed assets may be listed under the property, plant, and equipment (PP&amp;E) section of a company's balance sheet. Current assets and intangible noncurrent assets are listed separately. "As the asset depreciates, an offsetting entry for accumulated depreciation reduces the value of the asset on the balance sheet," notes Zeiter. The accumulated depreciation may have its own line on the balance sheet, with a negative number to show how the depreciation decreases the fixed asset's current value. <h3>The income statement</h3>An <a href="https://www.businessinsider.com/income-statement" target="_blank" rel="noopener">income statement</a>, also called a profit and loss statement (P&amp;L), shows a company's revenue and expenses during a specific reporting period. "Fixed asset purchases are not recorded on the income statement," says Zeiter. "Instead, they are expensed over the expected lifetime of the asset using depreciation. Assets such as buildings are depreciated over a longer time period than assets such as computers." <h3>The cash flow statement </h3>A cash flow statement shows how much cash is moving into and out of a company during a reporting period, such as a month or year. "Fixed asset purchases and sales are considered investment activity on the cash flow statement," says Zeitier. If a company sells a fixed asset, the money may be recorded as proceeds from the sale of property and equipment. <h2>The financial takeaway</h2>Understanding what fixed assets are and how they're recorded in a company's financial statements can help investors analyze a company's financial position. "There are a variety of formulas that allow investors to compare metrics across companies using the fixed asset amounts," adds Zeiter. These include the: <ul><li>Fixed asset turnover ratio, which compares a company's net sales to the value of its fixed assets. A higher ratio may indicate the company can effectively use its assets to make money. </li><li>Average age ratio, which shows the average age of the company's depreciable assets. A higher average ratio may indicate the company will need to replace its fixed assets soon.</li></ul>What's considered good or bad may vary depending on the industry. But you can look at similar companies' fixed assets and the resulting ratios to better understand which companies are better investment opportunities.

Fixed assets are long-term assets that companies use to operate

<ul class="summary-list"><li>High yields on short-term government debt will come down when the Fed cuts rates.</li><li>JPMorgan notes that the three-month rate will drop from 5.4% to 3.5% over the next 18 months.</li></ul>High yields in the era of tigter Fed policy have popularized short-term government debt, but investors can't depend on the "T-bill and chill" strategy for much longer, <a target="_blank" href="https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/on-the-minds-of-investors/how-should-investors-be-positioned-ahead-of-fed-rate-cuts/">JPMorgan said</a>.Treasury bills — which mature within a few weeks to a year — have become a go-to investment for passive investors hoping to cash in on high interest rates. As T-bills are sensitive to tighter monetary policy, yields have risen beyond 5% since 2022.But with rate cuts now looming in September, investors should brace for yields to drop, JPMorgan wrote. The bank expects the three-month bill rate to drop from 5.4% to 3.5% over the next 18 months.This decline could steepen if the economy slows by more than expected, the analysts added.Yet, parking money in short-term debt may be a difficult habit for investors to break. According to <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-08-27/-t-bill-and-chill-is-a-hard-habit-for-investors-to-break">Bloomberg</a>, money-market funds operating that invest in short-term debt have received $106 billion in August alone, pushing total assets to a record high of $6.24 trillion.Still, JPMorgan suggests investors reposition.T-bills have a history of underperforming long-dated bonds when interest rates move lower, and traders may lose out on other opportunities by sticking around in cash-equivalents like short-term Treasurys. "For fixed income, investors have not missed their opportunity to capture attractive yields, with core bond yields still at 4.4%, but the window is rapidly closing," analysts wrote. "As witnessed this summer, what's here today can quickly be gone tomorrow: 2-year yields dropped 85bps in less than two months."JPMorgan's advice on rebalancing investments is based on where the economy is headed. Investors will need to determine why the Fed is cutting rates before pursuing a new strategy.When the Fed eases policy due to a recession, investors should focus on US large-cap and growth stocks. International equities, as well as value and small-cap stocks, typically suffer the most, JPMorgan said.In fixed-income, investment-grade bonds should be the main focus. Long duration typically outperforms, while high-yielding bonds may result in negative returns.When the Fed eases policy alongside a soft landing — in which low inflation is achieved without sparking a major downturn — large-cap returns tend to double those of small-caps. Meanwhile, US growth and value equities perform similarly, while risk assets and high-yield bonds can lead to positive returns.

The 'T-bill and chill' trade is about to end for investors. Here's where JPMorgan says they should invest instead.

We are once again at a crucial point in the world's economic recovery. Everything must go right, or global markets could turn violent.For the past four years, the world has been unified in its efforts to first ease the economic pain caused by the pandemic and then combat the historic bout of inflation that followed. When the pandemic set in, central banks around the world slashed rates to zero — just as they did during the financial crisis. Then as inflation set in, they started raising rates at a rapid clip unseen in decades. They did all this in nearly perfect time, which ensured that markets remained stable and predictable. But now, the world risks falling out of sync.The <a target="_blank" href="https://www.businessinsider.com/ecb-lagarde-economy-interest-rates-cuts-inflation-growth-central-banks-2024-6">European Central Bank began easing interest rates </a>on Thursday, cutting its benchmark rate by 0.25%. The move is not only a sign of confidence that the eurozone is in the last bouts of its battle with inflation but also an indication of worry that the economy needs a small boost to keep rolling. Investors and economists expect the Federal Reserve to follow suit and cut interest rates <a target="_blank" href="https://www.businessinsider.com/fed-interest-rate-decision-may-rates-held-steady-no-cuts-2024-5">in September</a>. And so, the story goes, central banks around the world will begin their coordinated descent into a soft landing — a perfect calibration of that push-pull between fighting inflation and evading a recession.The thing is, reality has been making a mockery of experts' assumptions all year long. Wall Street started the year expecting inflation to cool off, the economy to slow to a more leisurely pace of growth, and as many as <a target="_blank" href="https://www.businessinsider.com/interest-rates-2024-outlook-rate-cut-predictions-wall-street-stocks-2023-12">six interest rate</a> cuts from the Fed. Instead, inflation data has consistently come in hot, and the US economy's strength has defied expectations. This combination means there's a good chance that the September cut Wall Street is praying for may never materialize."Summer will definitely be interesting," Tamara Basic Vasiljev, a senior economist at Oxford Economics, told me. Her base case is that everything will go according to plan, but there are caveats: "The Fed has proven its ability to fight off any kind of financial stability issues. But what if services inflation keeps surprising to the upside through the summer? Then it becomes apparent they can't even cut in September."If the Fed doesn't cut come fall, America's high interest-rate regime will be out of step with the rest of the world. And any differential between the US and the rest of the world would send a weird wave of money crashing onto America's shores. That sudden surge of cash could, in turn, add liquidity to our financial system just as the Fed is trying to dry it up and push up prices around the economy. This would make it even harder for the Fed to ease, further diverging US policy from the rest of the world. Think of it as a vicious cycle standing in the way of the world's smooth, soft landing.Over time, this has the potential to add volatility to already skittish markets. Here in the US, stocks move on mood — one week, Wall Street thinks we're in for stagflation; the next, it believes a soft landing is coming. This divergence in interest policy, over time, has the potential to bring that same frantic energy to currency markets.<h2>The carry nation</h2>Wind is the result of an imbalance: air moving from areas of high pressure to areas of low pressure. The greater the pressure differences, the faster the wind blows. The same principle applies to the global flow of cash — investors chase imbalances, and sometimes things get blown over in the process.The US already has somewhat higher interest rates than other countries — the Fed's benchmark rate is <a target="_blank" href="https://www.businessinsider.com/fed-rate-cuts-forecast-2024-full-accommodation-economic-contraction-unemployment-2023-11">5.25%- 5.50%.</a> These differentials have allowed Wall Street to make what is called a "<a target="_blank" href="https://markets.businessinsider.com/news/currencies/foreign-exchange-funds-central-banks-fed-rate-hikes-carry-trade-2023-11">carry trade</a>": Investors borrow money from a country with low interest rates, invest it in bonds from a country where interest rates are high, and pocket the difference. In this case, that means moving money from the rest of the world and buying US assets, particularly government bonds. This trade has been hot since the start of the year — investment banks like JPMorgan and UBS recommended it to clients, and a Bloomberg index based on selling the lowest-yielding G10 currencies and buying the highest ones has already returned 7% this year. The Institute of International Finance reported that in May alone, Emerging Markets ex-China — where rates are also higher — saw bond-market inflows of $10.2 billion, mostly due to investors benefiting from carry trades like <a target="_blank" href="https://www.marketwatch.com/livecoverage/stock-market-today-dow-futures-dip-as-growth-concerns-linger/card/japanese-yen-strengthens-as-risk-aversion-rises-carry-trade-crumbles-9tGHrcickLndc749YzTO">selling Japanese yen</a> to buy Mexican pesos. These trades are "everywhere," Peter Schaffrik, a global macro strategist at RBC Capital Markets, told Bloomberg. And the more rates diverge, the more attractive this march of money from weak to strong becomes.What seems like a slam dunk for Wall Street is not such good news for either the US or the global economy. At a time when economies in Europe and elsewhere are losing momentum, sucking more money away from these economies will tighten financial conditions while they're trying to avoid a slowdown — especially in crucial regional data like <a target="_blank" href="https://markets.businessinsider.com/news/stocks/european-shares-fall-amid-data-deluge-1033460481">German industrial production</a>, which has come in soft of late. It will also weaken the euro, which will make it harder for the continent to import the energy it needs to fuel its economy and make it more expensive to buy American goods. And in Asian economies, where interest rates are already significantly lower than in the US, things could get even messier."We expect that <a target="_blank" href="https://www.businessinsider.com/japan-yen-slump-intervention-currency-buy-us-involvement-interest-rates-2024-5">Japan</a> and South Korea will face challenges balancing monetary policy to maintain stability as the dollar appreciates," Nigel Green, the CEO of deVere Group, a global wealth-management firm, told me. "I wouldn't be surprised if policymakers feel the need to intervene in the currency markets or adjust interest rates to manage these effects."For the US, more money sloshing onto America's shores has the opposite impact of what the Fed wants to achieve: It pushes up asset prices and loosens financial conditions. In other words, it makes it harder for the Fed to fight the inflation that is aggravating consumers."There are legitimate concerns that this influx of capital into the US will increase liquidity, driving up asset prices and inflationary pressure, making it more challenging for the Fed to lower rates," Green said. "Increased liquidity can lead to inflationary pressures, which the Fed might need to counteract by maintaining or even raising rates."As Green mentioned, there's a way for the Fed to fight back: hiking interest rates some more. But jacking up interest rates even further could finally break the back of the <a target="_blank" href="https://www.businessinsider.com/recession-outlook-hard-landing-economy-consumer-spending-slowdown-growth-gdp-2024-5#:~:text=Consumers%20are%20finally%20slowing%20their,and%20a%20weakening%20job%20market.">until now strong US consumer</a> and send us into a recession. It's the same calculation the ECB is making, though the EU's slowdown is more marked. Given these downsides, the Fed is unlikely to hike, which will create the perfect market for the carry trade to thrive. And as long as US data remains choppy — pointing to sticky inflation one day and disinflation the next — this carry-trade cash will end up sloshing around in the economy. This is a dynamic that central banks from countries already on their rate-cutting path will be watching. They're already seeing growth slow and, on top of that, will have money sucked away to the US, where data has been relatively strong through the first half of the year. Carry-trade cash exploits the dislocations between global economies that are keeping our policies from coordinating. We're in the early innings, but the longer this goes on, the more of an impact it will make. For Wall Street, that means <a target="_blank" href="https://www.businessinsider.com/wall-street-summer-worry-stock-market-crash-inflation-hamtons-vacation-2024-5">a summer of vigilance</a>. For economists, it means the picture of our economy that they're trying to cobble together with contradictory data is even blurrier. It's a time of increased uncertainty.<h2>Sticky-ing the landing</h2>There is, of course, hope that this divergence will be only a temporary state of affairs. If the US suddenly starts printing weak economic data, that will hasten the Fed's move to cut rates. And there are signs that EU inflation is stickier than policymakers would like, which could slow the pace of cuts enough for America to catch up.There are already signs of a slight tempering of America's red-hot economy: The household savings rate is at a 16-month low, disposable incomes have made only modest gains, and the amount that people have to pay on credit balances is elevated. The white-hot job market has cooled, and job openings have returned to prepandemic levels. But not every indicator is telling the story of a soft landing. On Friday, <a target="_blank" href="https://www.businessinsider.com/how-unemployment-rate-job-growth-looked-in-may-2024-6">May's jobs report</a> showed that the country created 272,000 jobs — way more than the 182,000 expected. The data seesaw stateside continues. On the other side of the Atlantic, there are signs that UK and EU inflation could be stickier than policymakers had foreseen. <a target="_blank" href="https://markets.businessinsider.com/news/interestrates/eurozone-inflation-rises-ahead-of-ecb-meeting-1033440963">EU inflation ticked up slightly to 2.6% in May</a>, surprising the ECB but not shocking it enough to stop a June rate cut. In the UK, stubborn services inflation, which came in at 5.9% for the month of April, may give the Bank of England reason to pause. Oxford Economics' Basic Vasiljev told me that this indicated that the EU and US were moving more in tandem than this policy lag suggests and the current policy divergence would remain short. Even the Bank of Canada, which cut its benchmark rate to 4.75% from 5% last week, is cautiously optimistic the dislocation will be momentary. "There are limits to how far we can diverge from the United States, but we're not close to those limits," Gov. Tiff Macklem said at the Bank of Canada's latest meeting. Not close… yet.This rosy outlook is not a guarantee: Wall Street still expects three cuts this year from the ECB and the <a target="_blank" href="https://markets.businessinsider.com/news/stocks/european-shares-fall-amid-data-deluge-1033460481">Bank of England</a>. Even in little clips of 0.25%, three cuts would create a divergence traders would exploit. And if September comes and the US is still hot, that exploitation could continue all year long, exacerbating the conditions that are keeping monetary policy out of sync. That sucking sound you'll hear all summer is the sound of Wall Street slurping money from Europe, Canada, the UK, and East Asia into US markets. Policymakers will have to recalibrate. This doesn't mean we won't stick a soft landing — especially if this disordered moment is brief — it just increases the odds of a bumpy ride until we get there.<a target="_blank" rel="" href="https://www.businessinsider.com/author/linette-lopez">Linette Lopez</a> is a senior correspondent at Business Insider.

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Allow indexation benefits for savings such as stocks, fixed deposits: Cong to govt

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Silver touches Rs 1 lakh mark on MCX march contract

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Goldman Sachs beats Wall Street forecasts as investment-banking fees surge 20%

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Fixed assets are long-term assets that companies use to operate

Louis DeNicola

The 'T-bill and chill' trade is about to end for investors. Here's where JPMorgan says they should invest instead.

Filip De Mott

America's plan to fix its economy is going to screw over the rest of the world

Linette Lopez

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