Myrtle Beach, SC Correspondent — The Fed isn't a priesthood and it isn't a campaign desk. Elected control already exists in the statute — a mandate Congress wrote, governors the Senate confirms, a chair who can be embarrassed in a hearing. Using those tools is adult. Turning the mid-year rate path into a loyalty test … Continue reading Is a mid-year fight over the Federal Reserve’s independence a necessary assertion of elected control, or a risk to the only remaining adult in the rate room?
inflation
Will the combination of elevated interest rates and high government debt eventually force a fiscal adjustment that neither party appears prepared to make?
Owatonna, MN Correspondent — Higher rates raise the cost of servicing the stock and high deficits keep adding to it. The number that ended the abstraction this year is that net interest exceeded defense spending. That's not a projection. It's the ledger, and it happened while both parties campaigned on programs that assume it away. … Continue reading Will the combination of elevated interest rates and high government debt eventually force a fiscal adjustment that neither party appears prepared to make?
Briefly, what are the three or four most consequential issues the winner must confront in the first year, and which candidate is better equipped to address them?
Clermont, Florida Correspondent — Restore operational control at the border and fix the asylum mismatch. Address cost-of-living pressure through energy production, housing supply, and spending discipline. Rebuild deterrence in the Middle East and hold a competitive stance toward China without new open-ended wars. Signal fiscal seriousness on the debt path. Trump's record and stated priorities … Continue reading Briefly, what are the three or four most consequential issues the winner must confront in the first year, and which candidate is better equipped to address them?
Inflation and the cost of living have remained central concerns even as official rates have moderated. How should voters evaluate the candidates’ records and plans on prices, wages, housing costs, and federal spending?
Owatonna, Minnesota Correspondent — Voters should look at the full path of prices since 2021, real wages, housing costs, and the fiscal stance that accompanied the surge. Trump's record before the pandemic and his emphasis on energy production and spending restraint give him the stronger position on durable relief. The alternative continues to lean toward … Continue reading Inflation and the cost of living have remained central concerns even as official rates have moderated. How should voters evaluate the candidates’ records and plans on prices, wages, housing costs, and federal spending?
The economy remains under severe pandemic pressure, with high unemployment in some sectors and large federal interventions. What are the most important differences in the candidates’ plans for recovery, jobs, and the long-term fiscal consequences of continued stimulus?
Owatonna, MN Correspondent — The core differences are the speed of reopening, the scale of further support, and how seriously each treats the long-term debt path, which is to say not very seriously in either case. Trump's pressure to reopen and his pre-pandemic labor market give him the stronger claim on recovery and jobs. Biden's … Continue reading The economy remains under severe pandemic pressure, with high unemployment in some sectors and large federal interventions. What are the most important differences in the candidates’ plans for recovery, jobs, and the long-term fiscal consequences of continued stimulus?
Should the Federal Reserve begin reducing its balance sheet more aggressively even if it risks tighter financial conditions later in the year?
Owatonna, MN Correspondent — The balance sheet is still far larger than it was before the crisis, and gradual reduction is appropriate for exactly that reason. It got that way over years and it should come down over years. Moving aggressively risks a sharp tightening the real economy may not be ready to absorb. The … Continue reading Should the Federal Reserve begin reducing its balance sheet more aggressively even if it risks tighter financial conditions later in the year?
Is Inflation a tax? If so, is it the most regressive tax we pay?
Prescott Valley Correspondent-With inflation not being under direct government control or managed by a federal or state taxing authority, like the Internal Revenue Service (IRS), it is not going to be considered a direct tax, though inflation certainly has effects that are tax-like in nature. Inflation would be considered more of an indirect tax as … Continue reading Is Inflation a tax? If so, is it the most regressive tax we pay?
