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Fed official: U.S. economy ‘on the brink’ of a complete recovery: Here's how the headlines can affect your money

Plus, what to know about filing your taxes if you collected unemployment benefits last year.

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Federal Reserve Bank of Richmond President Thomas Barkin poses during a break at a Dallas Fed conference on technology in Dallas, Texas, May 23, 2019.
Ann Saphir | Reuters

Markets close the week lower. The U.S. economy is "on the brink" of complete recovery. Plus, paying your side hustle taxes like a boss. Here's how the headlines could affect your money.

Markets end the week lower

The market was mixed Friday: The Dow and S&P fell 0.7% and 0.1%, respectively, and the Nasdaq gained 0.8%. All three indexes declined for the week. The Dow shed 0.5%, and the S&P and Nasdaq each fell 0.8%.

Markets were up Monday morning as traders cheered falling Treasury yields and tech stocks rebounded.

U.S. economy 'on the brink' of a complete recovery

The U.S. economy is recovering from the Covid-19 recession, according to Richmond Federal Reserve Bank President Thomas Barkin, who spoke Monday at the virtual Credit Suisse Asian Investment Conference. "I'm hopeful we're on the brink of completing this recovery," he said.

The remarks come days after the Fed upgraded its economic outlook for 2021.

Barkin pointed out, however, that some economic "scarring" may take longer to heal. Those issues include low labor force participation rates of parents and education loss for students who did not transition well to remote learning.

How to pay taxes on your side hustle

If you're one of the many people who started a side hustle during the pandemic, remember, if you have a side hustle that makes money, you have a business.

The most common side hustle tax mistake? Missing out on business deductions, experts say. To remedy that, make sure you read up on what you're eligible to deduct and keep good records of expenses you incur.

VIDEO5:2905:29
The most common tax mistake side hustlers make

Video by Courtney Stith

Words you've heard: supplementary leverage ratio

The supplementary leverage ratio measures as a percentage a bank's ability to take losses on its assets. As the pandemic spread across the country last April, the Federal Reserve calmed jittery markets by lowering the amount of capital banks needed. On Friday, the central bank chose not to extend those lower supplementary leverage ratios. Banks will have to shore up their capital reserves to pre-pandemic levels by March 31.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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