The public debt could approach 100 percent of U.S. GDP by the end of the next decade and 152 percent by 2048, reaching the highest level in the U.S. history, according to the CBO.
yield, rather than the fed funds rate. Both benchmarks are guided by the same macroeconomic forces, but at its most basic level, Treasury yields rise and fall due to investors’ expectations for inflation and economic growth, along with the public’s appetite for borrowing from the governm...
The U.S. government debt ceiling is again an issue and until that's resolved and borrowing can rise, the current cap will affect Treasury bond issuance in a way that will obscure already difficult efforts to gauge money market liquidity. The Fed, since 2022, has been allowing...
3. France’s government bonds came under renewed selling pressure today after Moody’s downgraded the country’s sovereign debt over the weekend,citing a “materially weaker” economic outlook. The rating agency said it expected the country’s incoming government to struggle to tackle its deficit....
Business contacts in many Districts reported a steady or stable pace of economic activity, while contacts in a couple of Districts conveyed increased optimism about the outlook. A few participants noted that government spending was supporting business expansion in their Districts. Consisten...
Government debt is inflationary. As much as the FED might try to tighten, they might not be able to counter the Governments inflationary debt. Time will tell. Banks are sitting on 2 trillion in asset losses. Will the FED allow some of these poorly managed risk-taking banks to fail or b...
Scott Pelley: But is the national debt a danger to the economy in your view? Jerome Powell: In the long run, the U.S. is on an unsustainable fiscal path. The U.S. federal government's on an unsustainable fiscal path. And that just means that the debt is growing faster than the eco...
The mainstream holds the Fed is busy planning a return to the glory days of zero interest rates, but ZIRP is on the downside of the S-Curve; it's done, gone, history.
The road to hell is paved with good intentions, and we'll likely look back with scorn at the Federal Reserve's well-intentioned monetary policy.
Sometimes the Fed's toolkit is simply not enough to spur economic activity in a severe crisis.Quantitative easing(QE) is a form of unconventionalmonetary policyin which a central bank purchases longer-term government securities or other types of securities from the open market to increase the mone...