Republican senators have agreed to back a plan to cut taxes by $1.5 trillion during the next decade. They say the tax cut would not affect the US deficit because the reduction would stimulate economic growth and compensate.
Cryptocurrencies and the technology they are based on aren't developed enough to determine the risks central banks would incur from issuing digital currencies, the Bank for International Settlements said. Most of the suggested benefits of a retail cryptocurrency issued by a central bank could be achieved by letting the public open accounts at the central bank, but central banks are reluctant to do that, the BIS said.
FinovateFall, held last week in New York City, included bankers alongside financial-technology companies specializing in areas including security, online lending and artificial intelligence chatbots. Missing from the event were Square and Social Finance, two companies that applied for charters this year.
Federal Reserve Chair Janet Yellen is widely expected to announce this week the start of passive unwinding of the central bank's $4.5 trillion portfolio, but how much the balance sheet will shrink remains unknown. The Fed's liabilities have increased, so the balance sheet must remain larger than the 2008 level, which was less than $900 billion.
The volatility of bitcoin raises the question of its worth, which is likely $0, James Mackintosh writes. Mackintosh attributes most of bitcoin's value to speculation and notes technological limitations.
Despite a strengthening economy and high job rates, most US workers are unlikely to see sizeable increases in their salaries for 2018, according to Aon's 2017 US Salary Increase Survey of 1,062 US companies, which projects base pay is expected to be 3% in 2018, up slightly from 2.9% in 2017. Read more.
"After hundreds of years of paper notes and cashiers in our banks, I predict that we will be cashless and digital within the next 30 years," says John Brosnan, head of Financial Services Group, Aon Risk Solutions. The Financial Times has described cash as a "barbarous relic," and around the world digital cryptocurrencies compete to provide people with what is designed to be a completely decentralized currency. Understanding why people are looking to stop circulating cash and what the advantages and pitfalls could be is becoming increasingly important. Read more.
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