The Federal Reserve paused its rate cuts recently as the rate of inflation has stubbornly oscillated above the Fed’s 2% target rate. Added to the Fed’s concerns about the uncertainty of the future path of inflation is the unknown impact that tariffs may have on end-consumer prices and an increase in short-term consumer inflation expectations. So far, this data appears to have impacted the bond market with US long-term interest rates nearing a 10-month high, but the US stock market has been impacted very little.

The US Government finances have been headlining the news lately. While the methods have been hotly debated, having the spotlight on the US deficit will hopefully be a good thing as the current $2 trillion federal deficit is likely double the long-term sustainable level. In addition, the high levels of government borrowing are likely pushing up borrowing costs for US businesses and consumers.

Health Savings Accounts (HSAs) which are medical savings accounts that allow those with high-deductible health insurance plans to save for future out-of-pocket medical expenses, have become more and more popular over time as individuals see the benefits of having more control over their health costs. For 2025 the contribution limits to these medical savings accounts have increased by $150 for those with individual plans and $250 for those with family plans.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board - Schwab is issuing 1099s for non-retirement accounts in three batches this year. The first batch, which only included the most basic tax reporting, was issued on January 31st. The second batch, which includes a much larger percentage of all the 1099s that will be issued, was mailed and posted online on February 14th. The final batch, which will likely include just a small number of accounts with unusual transactions, will be mailed and posted on February 28th. So, all 1099s should be available in February with the vast majority available by mid-February.

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⁠⁠⁠⁠⁠⁠⁠⁠ The Personal Finance Review is published and distributed biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Chase Armer's book- Financial Planning Insights is now available at: ⁠⁠https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb⁠⁠⁠⁠⁠⁠⁠⁠⁠

⁠Intro 00:00

Tariff and Inflation Uncertainty Put the Fed on Pause 01:35

Government Debt Sustainability and Crowding Out 13:46

Health Savings Account (HSA) Limits Increase in 2025 22:00

Bulletin Board 20:14

Planned Solutions, Inc.