Municipal investors are starting to demand a bigger premium on the debt of Chicago’s junk-rated, cash-strapped school district, which must figure out how to close a $734 million deficit before the end of this month https://t.co/RAXxJwfbWR ...

Trudy. It's an amazing story. Give us the details on why these pension decisions are really giving Chicago a much worth of a time now at raising money.So Chicago already is facing what early estimates indicate is $1,000,000,000 deficit in 2026. And its long term financial outlook also is weighed down by the net unfunded pension liability that it carries. Now, this new pension law that was just signed by Governor Pritzker last week potentially adds another $11 billion to roughly $36.5% billion long term liab ...

We've been speaking with top economists to better understand what this economic climate means for companies' bottom lines. Today, I'm speaking with Harvard professor Carmen Reinhart. Hi, Professor.Thanks so much for taking the time to talk with me today. Thank you for having me. Great.Alright, I want to start generally: what's the biggest threat to U.S. economic growth right now. Uncertainty. And uncertainty covers a lot of ground, right.We have policy uncertainty from all angles, whether it's tariffs, ther ...

The goals of Tesla as a US manufacturer of hardware and a US developer of software, same with XAI, is just highly analogous with the ambitions of this administration. The world is going to find out a lot more about how the Trump administration will approach AI from a regulatory and policy perspective. And as it stands, Musk won't be there. SpaceX is the national champion of space exploration. Tesla is the US manufacturer of automobiles, electric vehicles, even if the future is different. And they kind of al ...

seven. However you look at it. And I think, you know, if inflation comes down the economy continues to do well.They'll probably reduce rates shortly. >> Are you worried as as Fed Chair Powell mentioned yesterday that the lagging effects of tariffs have yet to really fully play out, that we could still see an inflation spike from here. >> Yeah.I think when you look at first of all, there are a lot of forces, forces at work in the economy. And you know tariffs are one of them. You know, the remilitarization o ...

The goals of Tesla as a US manufacturer of hardware and a US developer of software, same with XAI, is just highly analogous with the ambitions of this administration. The world is going to find out a lot more about how the Trump administration will approach AI from a regulatory and policy perspective. And as it stands, Musk won't be there. SpaceX is the national champion of space exploration. Tesla is the US manufacturer of automobiles, electric vehicles, even if the future is different. And they kind of al ...

Poland’s PM warned against the consequences of the country’s increased public debt and deficit https://t.co/bNzsIm4Erh ...

Economic Outlook & Monetary Policy - The possibility of Federal Reserve rate cuts is decreasing due to a strong stock market and overall healthy economy [1][2] - The market's expectation for September has shifted from a 25 basis points rate cut to no change [2] - Short-term rate adjustments by the Federal Reserve aim to stimulate the economy, but fiscal challenges require attention [8][9] US Fiscal Challenges - The 30-year Treasury yield has reached 5%, the highest since 2007, indicating increased borrowing costs for the US government [3][4] - The US has $36 trillion in debt with an average interest rate of 33%, resulting in $12 trillion annual interest expense [5][6] - A rise in average interest rate to 5% on the debt could increase annual interest expense to nearly $2 trillion [6] - The US faces a fiscal crisis due to rising interest rates and continuous deficit spending [7] Deficit & Potential Solutions - The deficit's impact is now significant due to rising interest rates [11] - At current deficit levels, refinancing debt at current rates could lead to interest spending exceeding major expenditures like Medicare, Medicaid, Social Security, or the military [12] - Potential solutions involve slowing government spending, increasing revenue (including considering consumption taxes), and deregulation to stimulate economic growth [14][16]

French Prime Minister Francois Bayrou will outline his plan to sharply narrow the deficit today, setting the stage for a parliamentary battle that risks triggering another government collapse https://t.co/5AceZ740sC ...

Trade & Tariff Policy - The administration suggests that most trading partners could face tariff rates between 15% and 20% [1] - The country faces an urgent national emergency due to massive trade deficits, cumulatively around $18 trillion over several decades, representing a transfer of wealth, factories, and jobs abroad [2] - The US has collected approximately $100 billion in tariffs, marking a record for a single fiscal year [4] - The US is collecting $18 billion in tariffs from China alone on fentanyl [5] - A 35% tariff threat is being considered for Canada, but it is not yet applied under the USMCA agreement [7][8] - The administration is considering a potential 200% tariff on pharmaceuticals, possibly with a delay of over a year to allow supply chains to reorient [12] - Section 232 tariffs aim to strengthen the defense, manufacturing, and health industrial bases [13] Economic Impact & Fiscal Policy - The administration believes that combined with tariff revenues, the "big, beautiful bill" will turn a $2 to $3 trillion deficit into a $2 to $3 trillion surplus [16] - The Congressional Budget Office (CBO) forecasts a 18% rate of economic growth, which the administration considers too low [18] - Increasing the growth rate by 1% could raise a couple of trillion dollars, potentially leading to neutrality in the debt [19] - A 50 basis point increase in interest rates by the Federal Reserve (FED) could lead to a 025% to 05% reduction in GDP growth, resulting in 500000 to 750000 fewer jobs [22][23] - A half-point increase on short-term debt could add a couple of hundred billion dollars to the debt over ten years [24] Monetary Policy & Federal Reserve - There is an argument that the Federal Reserve is at least 50 basis points above where it should be, suggesting a need for lower rates [22] - The bond market may perceive Jerome Powell as ineffective due to his actions [27] - The Federal Reserve (FED) chair should have taken action to address fiscal policy concerns, similar to William McChesney Martin's approach during the Vietnam War [31][32]