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.
2018-12-22 14:38:00 Saturday ET
Federal Reserve raises the interest rate to the target range of 2.25% to 2.5% as of December 2018. Fed Chair Jerome Powell highlights the dovish interest ra
2020-04-10 11:33:00 Friday ET
Elon Musk envisions a bold fantastic future with his professional trifecta of lean startup enterprises SolarCity, SpaceX, and Tesla. Ashlee Vance (2015)
2025-02-02 11:28:00 Sunday ET
Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2025. Our proprietary alpha investment model outperforms the ma
2018-02-15 07:43:00 Thursday ET
Fed minutes reflect gradual interest rate normalization in response to high inflation risk. FOMC members revise up the economic projections made at the Dece
2017-11-29 07:42:00 Wednesday ET
The octogenarian billionaire and activist investor Carl Icahn mulls over steps to shake up the board of SandRidge Energy after the oil-and-gas company adopt
2019-04-26 09:33:00 Friday ET
JPMorgan Chase CEO Jamie Dimon defends capitalism in his recent annual letter to shareholders. As Dimon explains here, socialism inevitably produces stagnat