Owatonna, MN Correspondent — Debt is high, interest claims a growing share, and the deficits are running in what is nominally a non-recession environment. The complication this year is that the environment stopped being clearly non-recessionary. Growth in the final quarter of last year came in near half a percent, dragged down by a six-week … Continue reading Is the current combination of fiscal policy, monetary conditions, and debt levels sustainable through the next economic downturn?
investing
The tax and reconciliation bill was signed today. Did Congress write a durable code, or a stack of expiring provisions that will be relitigated in 2027?
Gastonia, NC Correspondent — We can stop arguing about how it should be written. It was signed this morning, and the answer is both. The core is permanent. The rates and brackets don't expire, and full expensing was made permanent. Those are real and they're what a lender models. Everything the campaign was actually about … Continue reading The tax and reconciliation bill was signed today. Did Congress write a durable code, or a stack of expiring provisions that will be relitigated in 2027?
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?
