2018-01-13 08:39:00 Sat ET
treasury deficit debt employment inflation interest rate macrofinance fiscal stimulus economic growth fiscal budget public finance treasury bond treasury yield sovereign debt sovereign wealth fund tax cuts government expenditures
The Economist digs deep into the political economy of U.S. government shutdown over 3 days in January 2018. In more than 4 years since 2014, U.S. government shutdown looks likely to end within a specific time frame. Government shutdowns cost a great deal, dampen stock market investor sentiments and expectations, and embarrass congressional members on the Senate and House of Representatives. Democrats now exacerbate procedural uncertainty and hence put pressure on the Republican Senate majority leader over DACA and Obamacare legislative issues. Both DACA and Obamacare are controversial milestones, and Democrats require reasonable solutions to carefully crafting better health care and immigration bills.
President Trump urges Congress to pass a *bill of love* for DACA recipients to stay with legal residency (but not citizenship) in exchange for better border security finance and stronger enforcement of immigration laws. Also, both Republicans and Democrats seek to present their alternative cases for health care reforms in lieu of Obamacare or the Affordable Care Act.
These legislative issues matter because an increase in U.S. government debt and deficit may trigger greater seigniorage in light of robust money supply growth and Treasury bond issuance. The resultant seigniorage discrepancy can translate into inflation that manifests in higher general prices for the typical American consumer. In accordance with its dual mandate of maximum employment and price stability, the Federal Reserve would need to accelerate the current neutral interest rate hike to contain inflation near full employment. These ripple effects may dampen stock and bond prices, investor sentiments, and macroeconomic expectations.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-08-31 08:42:00 Friday ET
We share several famous inspirational stock market quotes by Warren Buffett, Peter Lynch, Benjamin Graham, Ben Franklin, Philip Fisher, and Michael Jensen.
2017-03-09 05:32:00 Thursday ET
From 1927 to 2017, the U.S. stock market has delivered a hefty average return of about 11% per annum. The U.S. average stock market return is high in stark
2024-04-02 04:45:41 Tuesday ET
Stock Synopsis: High-speed 5G broadband and mobile cloud telecommunication In the U.S. telecom industry for high-speed Internet connections and mobile cl
2020-10-06 09:31:00 Tuesday ET
Strategic managers envision lofty purposes to enjoy incremental consistent progress over time. Allison Rimm (2015) The joy of strategy: a bu
2018-05-27 08:33:00 Sunday ET
The Federal Reserve proposes softening the Volcker rule that prevents banks from placing risky bets on securities with deposit finance. As part of the po
2018-09-17 12:40:00 Monday ET
Nobel Laureate Robert Shiller's long-term stock market indicator points to a recent peak. His cyclically-adjusted P/E ratio (or CAPE) accounts for long-