News and Commentary
In an article in Reuters, Howard Schneider, Ann Saphir, and Jonnelle Marte cover Fed chair Powell’s recent appearance before the Senate Banking Committee to answer questions about inflation and bank regulation. Despite concerns expressed by Republican Senators, Powell expressed confidence that current inflation trends are temporary and isolated primarily to an idiosyncratic subset of markets. Senate Democrats critiqued Powell’s handling of bank oversight, claiming that bank regulation has weakened over his tenure as chair. Powell argued that the current capital requirements for banks are sufficient.
In a paper for American Compass, Chris Griswold makes the empirical case for a financial transaction tax (FTT) by debunking common arguments made against such a policy. Griswold then argues that the revenue gained from an FTT could be used for progress toward full expensing for capital investment, cancelling the amortization of research and development costs, and cutting capital gains for “very-long-term” investments.
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