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The federal debt reportedly reached $34.5 trillion, marking an increase of approximately $11 trillion since March 2020. This surge has sparked discussions among government and financial leaders, with a notable Wall Street firm questioning whether the associated costs could threaten the stock market’s upward trend. The Congressional Budget Office projects that the public debt will …
Moody’s Investors Service has downgraded the United States’ sovereign credit rating from Aaa to Aa1, citing concerns over the country’s growing debt burden and rising interest costs. This marks the first time Moody’s has lowered the U.S. rating, aligning it with previous downgrades by Standard & Poor’s (2011) and Fitch Ratings (2023). The downgrade reflects …
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The U.S. national debt has been growing more quickly in recent months, increasing about $1 trillion nearly every 100 days. U.S. debt permanently crossed over $34 trillion on 4th January 2024 according to data from the U.S. Department of the Treasury. It reached $33 trillion on 15th September 2023, and $32 trillion on 15th June 2023. Before …
Problem? Americans are using their credit cards more than ever, pushing the total balance to over $1 trillion for the first time in history, according to a report from the New York Federal Reserve. The report, released August 2023, showed that credit card balances rose by $45 billion to $1.03 trillion in the second quarter …
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The latest OECD report presents a cautious outlook for the UK economy, predicting slower growth amidst global uncertainties and domestic fiscal challenges. The UK’s GDP is projected to grow by 1.3% in 2025 and 1% in 2026, reflecting a slight downward revision. According to the OECD, trade tensions, particularly U.S. tariffs, are disrupting global supply …
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The U.S. bond market is experiencing some turbulence due to rising Treasury yields and concerns over government debt. Investors are demanding higher yields because they’re worried about the GOP’s tax-cut plans, which could lead to increased borrowing and a larger deficit. Additionally, the recent Trump tax bill has caused Treasury bond yields to surge, as …
The Federal Open Market Committee (FOMC) has reduced its benchmark overnight borrowing rate by 0.25%, bringing it to a target range of 4.50%-4.75%. This move follows September’s significant 0.5% cut. The overnight borrowing rate, while primarily affecting interbank lending rates, also typically impacts consumer debt products including mortgages, credit cards, auto and other loans.
The stock markets mix of toil and trouble is in the cauldron ready for a bear market in 2025, if not before. Why? These concerns are now all combining, and it will likely add-up to a bear market of around 25% in 2025 (this is my best guess). Remember – make your own decisions and …
Inflation has become a persistent challenge for the Fed The battle against inflation persists, gradually impacting the U.S. economy and presenting substantial challenges for the Federal Reserve. Despite concerted efforts to control it, inflation remains stubbornly remains, leaving policymakers in a dilemma – to stimulate economic growth or to curb spiraling prices. Let the data …
U.S. citizens have accumulated a record-breaking $1 trillion in credit card debt. The Federal Reserve’s interest rate hikes through 2023 have caused average interest rates for credit cards to spike to more than 22%. Rates on retail credit cards are even higher, nearing 29% on average. Despite rising costs and higher borrowing rates, a record number of …
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Moody’s, a credit rating agency, lowered its ratings outlook on the United States to negative from stable. This means that Moody’s sees a higher risk of a downgrade in the future, which could affect the borrowing costs and confidence of the U.S. government. Moody’s actions The main reasons for Moody’s action are the rising deficits …
U.S. citizens now owe $1.08 trillion on their credit cards, according to a new report on household debt from the Federal Reserve Bank of New York. U.S. Household Debt Rises to $17.29 Trillion Led by Mortgage, Credit Card, and Student Loan Balances Total household debt rose by 1.3% to reach $17.29 trillion in the third quarter of 2023, according to …
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In an announcement Monday 30th October 2023, the U.S. Treasury Department said it will be looking to borrow $776 billion. The Treasury said it expects to borrow $816 billion between January and March 2024. The announcement comes 10 days after the government said the fiscal 2023 budget deficit would be about $1.7 trillion. U.S. debt …
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The amount of U.S. debt is a complex and controversial topic that has different perspectives, implications and opinion. According to the U.S. Treasury Fiscal Data, the national debt of the United States was $33.52 trillion as of 23rd October 2023. This includes both the debt held by the public, which is the amount the federal government owes to …
The U.S. Treasury yields are the interest rates that the U.S. government pays to borrow money for different periods of time. The 10-year Treasury yield is one of the most important indicators of the state of the economy and the expectations of inflation and growth. On 23rd October 2023, the 10-year Treasury yield rose above 5% …
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Fed holds steady The Federal Reserve held interest rates steady in a decision released Wednesday 20th September 2023, while also indicating it still expects one more hike before the end of the year and fewer cuts than previously indicated next year. That final increase, if realised, would be it for now according to data released …
Continue reading “U.S. holds interest rates at 5.25% – 5.5%, but expect higher rates for longer”
Slow-Growing UK Faces Over £2.6 Trillion Debt Pile £2,600,000,000,000 in debt The amount the UK owes exceeds GDP for first time since 1961. Inflation-linked bonds mean the UK is paying more than its peers. From the financial crisis to Russia’s invasion of Ukraine, the UK has borrowed and spent its way out of every jam. …
Must try harder The U.S. has lost its top credit rating from Fitch Ratings, one of the three major credit rating agencies, due to its recent political gridlock over the debt ceiling and deteriorating fiscal situation. How much does this matter? Fitch re-calculated the U.S.’s long-term foreign-currency issuer default rating (IDR) from AAA to AA+ …
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Elon Musk has dramatically distanced himself from Donald Trump’s latest tax-and-spending bill, branding it a ‘disgusting abomination’ in a fiery post on X. The Tesla and SpaceX CEO, once a key financial backer of Trump’s 2024 campaign, has now turned against the administration’s ‘One Big Beautiful Bill’, warning that it will explode the federal deficit …
Continue reading “Well – that didn’t last long – is the ‘love in’ over already?”
Trump calls it his ‘Big Beautiful Bill’, but Musk calls it a ‘Disgusting Abomination’ – who’s right? Trump’s Big Beautiful Bill is a sweeping tax and spending package aimed at making his 2017 tax cuts permanent while introducing new tax breaks and budget reforms. It eliminates taxes on tips and overtime, raises the State and …
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Investors are increasingly favouring short-term U.S. Treasury securities, with notable figures like Warren Buffett taking sizeable positions. This shift is driven by concerns over economic instability, fluctuating bond yields, and government spending. Short-term Treasuries, such as T-bills with maturities under a year, offer a safer haven compared to longer-term bonds, which are more vulnerable to …
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Elon Musk, the billionaire entrepreneur and CEO of Tesla and SpaceX, has recently made headlines in the U.S. with his stark predictions about the potential economic fallout if Donald Trump wins the upcoming presidential election. This is unusual, as you are more likely to hear these proposals in a crisis, when desperate times demand desperate …
The Fed in March 2024, indicated for the markets to expect three interest rate cuts by the end of 2024 – but what if this didn’t happen? The Federal Reserve’s decision to maintain interest rates in 2024 could have significant implications for the U.S. economy. Fed cred – credibility would be the first to go! …
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1987 October stock market crash October is a special month in the stock market for several reasons. It is the month when some of the most spectacular market crashes have occurred, such as in 1929 and 1987. However, it is also a month that has historically performed well on average, with a 0.6% price gain for …
Credit card losses in the U.S. are rising at the fastest pace since the Great Financial Crisis of 2008. Goldman Sachs reportedly predicts that credit card losses will continue to climb through the end of 2024 or early 2025 for most issuers. This is unusual because the losses are accelerating outside of an economic downturn. Unusual …