RFK Jr. Pays Lip Service to the Debt While Pushing Policies That Would Increase It
It’s good to hear a candidate actually talk about our spending problem. But his campaign promises would exacerbate it.
by John Stossel
Reason.com
Robert F. Kennedy Jr. won applause at the Libertarian National Convention by criticizing government lockdowns and deficit spending, and saying America shouldn’t police the world.
It made me want to interview him. This month, I did.
He said intelligent things about America’s growing debt:
“President Trump said that he was going to balance the budget and instead he (increased the debt more) than every president in United States history—$8 trillion. President Biden is on track now to beat him.”
It’s good to hear a candidate actually talk about our debt.
Fed On Course for September Rate Cut as Risks to Job Market Grow
by Catarina Saraiva
Yahoo! Finance
Powell said policymakers are moving closer to lowering borrowing costs from a more than two-decade high, highlighting a growing confidence at the Fed to dial back its restraints on the economy. He was careful, however, not to wed officials to a rate reduction should price data prove disappointing in the coming months.
“The changes in the statement and the press conference today basically tell you that September is going to happen unless the economic outlook changes materially,” former New York Fed President William Dudley said on Bloomberg Television.
This is One of the Only Ways They Can Tame Inflation and Save the Dollar
by James Hickman
Schiff Sovereign
There are only seven countries in the world that have a GDP in excess of $3 trillion: the United States. China. Germany. Japan. India. United Kingdom. And France.
Microsoft’s current market capitalization is also right around $3 trillion… which means that out of the 193 countries in the world that are recognized by the United Nations, 186 of them have an economy that’s smaller than Microsoft. Crazy.
Of course, much of Microsoft’s meteoric growth has taken place over the past three years because of the AI boom. And just like Nvidia is considered the most important hardware company in AI, Microsoft has positioned itself as the most important software company in AI… and they’re pretty much betting the business on it.
Fed Statement Silent About September Rate Cut, Still Waiting for “Greater Confidence” About Inflation, Keeps Rates Unchanged
by Wolf Richter
Wolf Street
Powell has some explaining to do. Only slight concessions about strength of the labor market and improvements in inflation.
FOMC members voted unanimously today to maintain the Fed’s five policy rates, with the top of its policy rates at 5.50%, according to the statement released today after its two-day meeting. The last rate hike occurred in July 2023, and this decision marks the anniversary of the 5.25% to 5.5% rates:
$35 Trillion… and Counting
by Peter C. Earle
The American Institute for Economic Research
Barely halfway through 2024, the rapidly rising tower of US public debt has reached yet another milestone. Two hundred and six days after reaching $34 trillion, America’s debt pile has reached $35 trillion. To put this in perspective, the debt at the end of World War II was about $259 billion, making the current debt more than 135 times that amount. The US has now borrowed amounts larger than the combined GDPs of China, Japan, and Germany.
It is increasingly difficult to grasp that only a bit more than four decades ago the US national debt was $907 billion, and that the surpassing of the $1 trillion mark in 1981 was seen as a watershed moment. The amount of debt undertaken by the Biden administration alone now stands at $7.2 trillion, an amount equal to the amount of national debt incurred between the presidencies of two Georges: Washington (who assumed office in 1789) and the younger Bush (who left office in 2009). This is still less than was taken on by the Trump administration ($7.8 trillion), but if the borrowing needs of the current administration are what they are projected to be, the Biden administration may set a new record by having added over $8 trillion in debt.
Fed Holds Rates Steady but Sends Mixed Signals About Timing of a Cut Later This Year
by John Carney
Breitbart.com
Federal Reserve officials agreed to hold interest rates steady at a 22-year high and signaled they may cut rates this year if inflation continues to show signs of declining to their two percent target.
Officials held the central bank’s benchmark federal funds rate unchanged Wednesday at a range between 5.25 percent and 5.5 percent, the level it reached last July after 10 consecutive hikes, following a run of mixed economic data that revealed moderating price pressures and a cooling of the labor market even while the economy continues to grow quickly.
The Fed’s statement indicates that it remains patient on rate cuts and is still looking for more data to build confidence that inflation is moving toward its target. This may throw some cold water on investors’ expectations of a September cut.
The Fed Holds the Target Interest Rate Steady. This Won’t Last Much Longer.
by Ryan McMaken
Mises.org
The Federal Reserve’s Federal Open Market Committee (FOMC) announced today that it will maintain the current target policy interest rate (the federal funds rate) of 5.5 percent. The committee has now held the rate at this level since the end of July 2023.
According to the FOMC’s press release:
The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities.
After such a long period holding rates flat, it would be unprecedented for the Fed to begin a new cycle of rising rates. Given this, and given that economic indicators continue to weaken, we can be quite confident that once the FOMC feels it is politically advantageous to do so, it will force down rates even lower.
Kamala Harris Was the Biggest Cheerleader for Bidenomics
by John Carney
Breitbart.com
Biden’s Economy Is Likely to Weigh on Kamala Harris
Kamala Harris has entered the presidential race burdened by her deep ties to the widely disliked Biden economy.
The latest Harvard CAPS/Harris poll has Harris behind Donald Trump by three points. While that is narrower than the seven point lead Trump had over Joe Biden, it is hardly the explosion of popularity you might expect from the ebullient reaction from Democratic partisans and their allies in the establishment media.
Keep in mind that Republicans have lost the popular vote in all but one election since 2000. So, Harris being just behind Trump 100 days before the election means Trump is in a strong position.
What, and Who, Caused the Inflation the Fed is Currently Fighting?
by Richard Mills
GoldSeek
The weaker labor market and rising unemployment rate, which hit 4.1% in June, is fodder for the US Federal Reserve to slash interest rates, possibly once in September and a second time in December.
In remarks to Congress, Fed Chair Jerome Powell said the US is “no longer an overheated economy” with a job market that has “cooled considerably” and is back where it was before the pandemic, suggesting the potential for rate cuts is becoming stronger. (Reuters, July 9, 2024)
Powell told senators that inflation has been improving in recent months. The chart below shows the annual inflation rate slowed to 3.0% in June, compared to 3.3% in May and 3.4% in April.
Shoplifters Point to Inflation and Economy as Main Reasons for Stealing From Retailers
by Khristopher J. Brooks
CBS News
Inflation has led to price surges at grocery stores, car dealerships and even dine-in restaurants nationwide. A new study finds it’s also the main motive behind another recent surge: shoplifting.
More than 20% of Americans have admitted to stealing items from stores within the past year or so, according to a new survey from personal finance website LendingTree, which polled 2,000 U.S. consumers from ages 18 to 78.
Of those who admitted to recent retail theft, roughly 90% of them said they did so because of inflation and the current economy. Specific reasons included, prices becoming otherwise unaffordable (34%), helping make ends meet (30%) and helping save a few bucks (27%).