What is the Federal Telephone Excise Tax The federal telephone excise tax is a statutory 3 percent federal tax on local telecommunications services. It is collected from the customer by telephone companies and then passed on to the U.S. Internal Revenue Service (IRS). The tax does not apply to so-called “bundled” services such as prepaid
What Was the Federal Trade Readjustment Allowance? The federal trade readjustment allowance was a form of supplemental unemployment income. The federal trade readjustment allowance was a provision of the Trade Adjustment Assistance (TAA) program, which was established under the Trade Act of 1974. It provided income to individuals who lost their jobs because of foreign
What Is the Federal Unemployment Tax Act (FUTA)? The Federal Unemployment Tax Act (FUTA) is a piece of legislation that imposes a payroll tax on any business with employees. The revenue it generates is allocated to state unemployment insurance agencies and used to fund unemployment benefits for people who are out of work. Key Takeaways
What Are Fed Funds Futures? Fed funds futures are financial futures contracts based on the federal funds rate and traded on the Chicago Mercantile Exchange (CME) operated by CME Group Inc. (CME). The federal funds rate is the rate banks charge each other for overnight loans of reserves on deposit with the Federal Reserve. The
What Is the Fed Model? The Fed model is a market timing tool for determining whether the U.S. stock market is fairly-valued. The model is based on an equation that compares the earnings yield of the S&P 500 with the yield on 10-year U.S. Treasury bonds. The model was never officially endorsed by the Federal Reserve
What is Fed Speak? Fed speak is a phrase used to describe former Federal Reserve Board Chair Alan Greenspan’s tendency to make wordy statements with little substance. Many analysts felt that Greenspan’s ambiguous “Fed speak” was an intentional strategy used to prevent the markets from overreacting to his remarks. The assumed intent of Fed speak
What Is a Fee-Based Investment? A fee-based investment is a product that is recommended by a financial planner whose compensation includes a sales commission paid by the investment provider in addition to the fees paid by the client. Fee-based investments may be offered by investment companies, banks, or other financial institutions. A fee-only investment is
What is Feedback-Rule Policy? Feedback-Rule Policy is an action taken by a government body with the goal of restoring equilibrium to an economy that has been destabilized. It may be fiscal policy enacted by a government or monetary policy imposed by a central bank authority. Key Takeaways Feedback-rule policy is an action undertaken by a
What Is a Feeder Fund? A feeder fund is one of several sub-funds that put all of their investment capital into an overarching umbrella fund, known as a master fund, for which a single investment advisor handles all portfolio investments and trading. This two-tiered investment structure of a feeder fund and a master fund is
What Is a Feed-In Tariff (FIT)? A feed-in tariff is a policy tool designed to promote investment in renewable energy sources. This usually means promising small-scale producers of the energy—such as solar or wind energy—an above-market price for what they deliver to the grid. Key Takeaways A feed-in tariff (FIT) is a policy designed to
