But inflation will reduce the real gain.
[C9.] Treasury Prices Show Big Gains Treasuries surged, with yields falling the most since September 2001 after a report showed only a moderate gain in inflation last month.
The prices of Treasury securities surged yesterday, with yields falling the most since September 2001 after a report showed only a moderate gain in inflation last month.
They said any package should include provisions that would reduce the corporate tax rate, adjust capital gains for inflation and lower the capital gains rate for corporations.
Republicans have frequently proposed indexing capital gains to inflation in past legislation, but didn't touch capital gains in their most recent law.
During the recession itself, by contrast, wage gains outpaced inflation.
Job growth slowed, unemployment jumped and wages lost what little ground they had gained against inflation since 2003.
In the case of a capital asset held for many years, the gain in inflation-adjusted dollars will be much less than the apparent gain.
Toss in anticipated job and income gains, low inflation, reduced closing costs and loans that made it easier to become a first-time home buyer, he says, and you've got all the elements of a healthy market.
But either way, it spells the end of the economic nirvana of recent years -- that potent concoction of extremely robust growth, accelerating productivity gains, low inflation and low unemployment.
Muted gains in inflation would allow the central bank to retain its measured approach toward monetary policy, by continuing to slowly unwind its nonconventional support measures for lenders, while delaying an increase in interest rates, analysts said.
