On Friday, with the US on the verge of another government shutdown and debt ceiling breach (with the agreement reached only after the midnight hour, literally) Moody's warned Trump that he should prepare for a downgrade from the rating agency that refused to join S&P in downgrading the US back in August 2011. Show More Summary
Washington Post: “Republican lawmakers in 2011 brought the U.S. government to the brink of default, refused to raise the debt ceiling, demanded huge spending cuts, and insisted on a constitutional amendment to balance the budget.” “On Wednesday, they formally broke [...]
As more details emerged about today's bipartisan Senate budget deal, which will lift spending caps by $300 billion above the current limit and which prompted today's sharp Treasury selloff, it was revealed that the agreement would suspend...Show More Summary
“House conservatives revolted against a massive bipartisan deal to raise the debt ceiling and bust spending caps, complaining that the GOP could no longer lay claim to being the party of fiscal responsibility,” The Hill reports. Said Rep. Mo Brooks [...]
Sometimes it feels as if no one in DC knows what they are doing.
Take your pick - a dismal 10Y auction that spiked rates to where the carnage started last week, or a budget deal that suspends the debt ceiling and adds to the fiscal recklessness of America's balance sheet? Either way, stocks are tanking... Bonds are tanking... Even as the Bill curve normalizes modestly... And the dollar is bid as risk-funding unwinds...
“Trump’s tax cuts are rocketing us into the debt ceiling,” wrote Catherine Rampell in The Washington Post on February 1, because “withholding from employee paychecks will drop starting no later than mid-February. Individual income tax...Show More Summary
While all eyes were glued to the collapsing stock market and soaring long-bond yields on Friday, the $2 trillion Treasury-bill market, where the U.S. government turns for short-term funding, was suddenly showing serious anxiety about...Show More Summary
``The Congressional Budget Office said on Wednesday that the United States is expected to bump up against its borrowing limit a month earlier than previously expected, a function of last year's $1.5 trillion tax cut, which is resulting...Show More Summary
That the debt ceiling needs to be raised beyond its current level of $20.5 trillion isn't news; that it needs to be done by the first half of March is. The Congressional Budget Office on Wednesday drew the line in the sand there thanks to the new tax law,...
WASHINGTON (Reuters) – U.S. Treasury Secretary Steven Mnuchin on Wednesday called on the Republican-controlled Congress to lift the federal debt limit “as soon as possible” so the government can pay employee benefits and other obligations. In a letter to congressional leaders and...
“Congress came under increased pressure to raise the nation’s debt ceiling following two reports forecasting that the federal government will run out of cash within a matter of weeks,” Bloomberg reports. “A key reason for the change is the implementation [...]
The Congressional Budget Office estimated that the deadline for Congress to raise the debt ceiling is now in early March instead of early April. The deadline is pushed up because of changes to tax receipts from the GOP tax law. ThatShow More Summary
JUST IN: Congressional Budget Office has issued a report advising Congress to consider raising the debt ceiling earlier than anticipated to account for the revenue loss brought upon by the GOP tax legislation. — NBC Politics (@NBCPolitics) January 31, 2018 What could I possibly add to that? And in other news, a metaphor: A train […]
Between The Federal Reserve FINALLY normalizing interest rates and the constant friction in Congress over the Federal budget and debt ceiling, the Treasury market seems dazed and confused. The post Dazed and Confused! 1m/3m T-Bill Curve Flirts With Zero Amid Debt-Ceiling Concerns was originally published at The Wall Street Examiner. Follow the money!
U.S. Treasury Secretary Steven Mnuchin on Wednesday called on Congress to lift the nation’s debt limit “as soon as possible” so that the federal government can pay government employee benefits and other obligations. In a letter to congressional leaders and key committee chairmen,...
Treasury Secretary Steven Mnuchin urged Congress to lift the debt ceiling as lawmakers embark on a spending spree.
Mnuchin is anticipated to offer remarks on interest rates, the debt ceiling and the economy.
Treasury Secretary Steven Mnuchin said the Treasury is closely following the growth of cryptocurrencies, particularly bitcoin. Mnuchin addressed the possible government shutdown, the debt ceiling, and the new tax law during a talk at...Show More Summary
The next fight over the debt limit could take place earlier than anticipated. The Republican tax bill could force Congress to act sooner to raise the nation’s $20.5-trillion borrowing ceiling because less money is expected to flow into the Treasury in coming weeks. On top of that, the possibility...