Just when I thought it safe to talk the complications of FIMA and currencies, Mondays subject… Scott Bessent, treasury secretary was at it again! This time without a leaking note pad, but an announcement of what we will call “Baby Twist”
Where’s the beef? – The Treasury will run a swap in time lengths (aka durations) of their holdings, moving from very short to long term starting early September and running for about 90 days…
The goal, similar to the FIMA situation, lower long term interest rates!
Oh…. Why the name “Baby Twist”? In 2011 the Fed announced operation twist, a repeat of a 1961 move, and transferred $700 billion from short to long – By the way, it lowered long term rates 1.5% – This time $10 billion – yep that number is correct, and this is 15 years later, so everything is larger now… hence the baby twist name!
IRS Notices all of the Sudden
It is with good authority through our contacts and channels that the IRS is catching up on many delayed notices!
Suddenly! In a matter of weeks we have mid single digit IRS notices through our contacts for all sorts of items i.e. Nothing standard that we can point to, other than the sudden volume of notices of various kind!
Stay calm, DO NOT IGNORE – In most cases, we are finding they are looking for more information or clarity.. BUT YOU MUST answer the notice!
Reach out with any questions!
More FIMA soon !
With a hopeful thought that “Baby Twist” will be a one and done announcement, next week we will go through Part 2 of the discussion that ran over due to a bit more complication than expected..
Some really cool charts to hopefully help make a complex discussion, simple and the afore promised conclusion!
Look for that next week if all goes well…
Times like this make for plenty of subject matter. We like more planning related not really associated with the IRS BUT …. yaa yaaa beggars and choosers….
Apologies for the complexities – making it as straight forward as possible! Mixing graphs too –
This too shall pass, but there are implications we will recall from these moves in the future..
Ahhh… all of this is next week… In a far North state getting the College Freshman settled.. Back early next week!
Have a Good Weekend and enjoy your Friday!
John A. Kvale CFA, CFP
AI Content Authenticity: AI created the Baby Twist, Uncle Sam and Platform image. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
