Small Businesses, Big Inflation Problem

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What's Happening Today

Good morning, it's Kristin with your daily morning digest.

Federal Reserve Chair Jerome Powell is set to face the Senate today as part of a confirmation hearing for his second term. Normally, something like this would be largely ceremonial (and probably ignored by most Americans), but today could provide us with important insights into how the Fed plans to address rising prices, a labor market with a record number of workers quitting their jobs, and more.

Speaking of increasing costs of goods, more than a fifth of small business owners say inflation is their "single most important problem," the highest number since 1981. According to the National Federation of Independent Business (NFIB), small business optimism did rise slightly last month, but fell short of expectations.

And for those of you itching to get started on your taxes: the IRS has announced they will start accepting tax filings on Jan. 24. But don't expect for everything to go smoothly: the IRS says the ongoing pandemic "continues to create challenges," so prepare yourselves for potential delays in getting back your refunds.

- Kristin

Editors' Picks

Workers Sick With Omicron Add to Manufacturing Woes. 'The Hope Was That 2022 Would Get Better.' (Wall Street Journal)

The I.R.S. Is Warning of a Messy Tax Season (New York Times)

IRS To Begin Accepting Tax Returns on Jan. 24 (The Balance)

Medicare's Record Part B Premium Hike May Shrink (The Balance)

U.S. Small Business Sentiment Rises Modestly in December - NFIB (Yahoo Finance)

Off the Charts

Home prices are so high that it's getting tougher and tougher to justify buying one, a national poll shows.

Just 26% of U.S. consumers surveyed by Fannie Mae thought it was a good time to buy a house in December—the fewest for any month since Fannie Mae started the survey in 2010—while 76% (almost a record high) thought it was a good time to sell.

Number of the Day

9.6 Million - That's how many medical bills a new ban on out-of-network surprises may apply to each year, including 18% of privately insured patients' ER bills.

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