Many adult children expect to inherit a significant amount of money from their parents, but studies show that parents plan to leave them less than they think. This is due to factors like rising costs, longer life expectancies, and changing views on inheritance. Additionally, communication between parents and adult children about finances is often lacking. As a result, many millennials and Generation Z may not receive as much inheritance as they anticipate.
Economist Stanley Druckenmiller criticizes the actions of the Treasury and Federal Reserve, claiming they have caused inflation to rise. He believes this mismanagement is harming Americans financially and could hurt President Biden's re-election chances. Druckenmiller also faults Biden for excessive spending and tariffs under former President Trump. While he sees inflation risks with both Trump and Biden, he aligns with free-market principles and opposes government interference in the economy.
Inflation is hurting lower-income Americans. They're being more cautious with their spending due to higher expenses and debt servicing. On the other hand, affluent consumers continue to spend, leading to a "K-shaped consumer" pattern. Despite high employment, the pressure of rising living costs is taking its toll on lower-income Americans.
Berkshire Hathaway's annual shareholder meeting is a major event for investors. This year, there will be an added significance as it will be the first without Charlie Munger, Buffett's longtime partner who passed away recently. Vice Chairman Greg Abel will fill Munger's seat, and investors will be looking for updates on topics like inflation, the company's Apple investment, and succession plans following Munger's passing.
The IRS plans to ramp up audits of wealthy taxpayers, large corporations, and complex partnerships. They aim to increase the audit rate for those with total positive income over $10 million by more than double by 2026. The IRS also plans to nearly triple audit rates on large corporations and boost them by tenfold for large partnerships. This emphasis on tax fairness prioritizes compliance resources for those with the highest potential for non-compliance.
The U.S. economy added fewer jobs than expected in April, but the unemployment rate rose. This report suggests the Federal Reserve may consider cutting interest rates to control inflation, easing concerns about a rapid pace of growth. The healthcare and social assistance sectors saw significant job increases, while part-time employment declined. The labor market remains strong but the softer data has raised the possibility of interest rate cuts in the coming months.
