The Financial Index is Daily Capital’s roundup of our Editor’s Picks for the day – featured trends and market analysis from around the Web.
Value Walk: The Fed has formally targeted a long-run inflation rate of 2 percent. Previously, the central bank’s informal goal had been an inflation rate between 1.7 and 2 percent, but this is the first time it has been formalized.
24/7 Wall St.: The formalized inflation rate target, along with employment goals, have the Fed projecting slower growth but stable prices and a lower jobless rate.
Value Walk: Morgan Stanley employees took a pay cut and their Chairman and CEO is arguing that any complaints about it are “naive” given the national economic context. Value Walk shares this and more from an interview with Morgan Stanley Chairman & CEO James Gorma.
24/7 Wall St.: With no more room to cut interest rates, Bernanke has said that the FOMC is ready to consider other steps to support the economy. Another round of quantitive easing is being discussed.
The Big Picture: Following an incredible Q1, Apple has taken back the title of world’s most valuable company and had the second-highest profit quarter of any company ever.
CBSNews: Steve Vernon continues his examination into how much retirement income you can generate with $100,000 of retirement savings at the beginning of the year. Today’s topic: Managed payouts.
Reuters Personal Finance: There’s a “sweet spot” – between the ages of 59½ and 70½ – when withdrawals from tax-deferred accounts are penalty-free, but not yet required. Advisers say those 11 years are the ideal time to protect yourself by moving some money into taxable and tax-free accounts instead of continuing to plow it into tax-deferred accounts. Here’s how.
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