Johnson and Paul dispute debt ceiling increase in Trump’s budget proposal
House Speaker Clashes with Senator Over Spending Cuts and Debt House Speaker Mike Johnson and Senator Rand Paul found themselves at odds this weekend, discussing spending cuts and the national debt, particularly in the context of President Donald Trump’s “Big Beautiful Building.” Johnson made waves after Paul labeled the current bill as “wimpy” during his […]
Rand Paul: Reductions in the ‘Big Beautiful Bill’ are ‘weak,’ ‘lackluster,’ and would ‘increase the debt’
Senator Rand Paul (R-Ky.) expressed his willingness to support President Trump’s “big beautiful bill,” even suggesting a reduction in what he termed “bearish and anemia” spending. However, he cautioned that the current proposal could lead to significantly increased debt. During an appearance on “Fox News Sunday,” Paul acknowledged the challenges the bill faces after being […]
Massie calls the Trump policy bill approved by the House “a ticking debt bomb.”
During Thursday’s House vote, Rep. Thomas Massey (R-Ky.) referred to the proposed legislation as “debt bombs inscribed” following a lengthy session. The bill aims to raise debt limits by $4 trillion. It also seeks to extend the tax cuts from Trump’s 2017 policy and incorporate additional tax measures, which would significantly enhance Medicaid funding. The […]
EUR/USD rises for the third consecutive day amid increasing concerns over US debt before the budget vote.
Moody’s plans to lower US debt ratings, likely leading to a decline in the US dollar and a rise in EUR/USD. Even with limited economic data, speeches from the ECB and Fed influence market sentiments toward the euro. Traders are on the lookout for new insights amid financial uncertainty, along with discussions about unemployment. EUR/USD […]
Credit Card Defaults, Balances, Debt Ratios, and Credit Limits in Early 2025: Our Reckless Spendings with Credit Cards
When the free money runs out, the hangover is resolved. Insights from Wolf Richter on Wolf Street. The delinquency rate for credit cards issued by commercial banks, specifically those that are 30 days or more overdue, dropped to 3.05%. This marks the third consecutive quarter of decline, a slight improvement from the first quarter of […]
Trump’s tax reductions could increase debt by $3.8 trillion.
According to a recent analysis by the Congressional Budget Office (CBO), President Trump’s tax policy might increase the national debt by approximately $3.8 trillion. The tax measures included in the House GOP’s proposal, aimed at advancing Trump’s domestic agenda, could potentially lower federal revenue by about 10% over the next ten years compared to the […]
Wealthy individual: US credit downgrade does not fully reflect the dangers of government debt
Billionaire Ray Dalio has expressed strong feelings regarding Moody’s recent downgrade of the U.S. credit rating, suggesting that it fails to fully capture the risks associated with government debt. Moody’s revised the country’s rating from Triple A to Double A just before the GOP’s spending bill announcement. “When you downgrade U.S. debt, it’s important to […]
US debt reduction leads to increased borrowing expenses
US Government Bond Market Faces New Volatility Investors might have thought the rough patch for financial markets was settling down, but fresh volatility in US borrowing costs suggests otherwise. Interest rates on long-term US government debt spiked above 5% this past Monday, a level not seen since October 2023, before pulling back slightly. This surge […]
Trump’s economic adviser on debt downgrade: ‘Moody’s can make its own choices’
On Monday, a key economic adviser to Trump dismissed the recent downgrade of the US credit rating by Moody’s, maintaining that he still considers the US economy to be rated triple-A. In a discussion on Fox Business Network’s “Mornings with Maria,” Kevin Hassett, who leads the White House National Economic Council, was asked by host […]
Concerns about the rising US government debt shake markets
US Federal Debt Loses Triple-A Credit Rating On Monday, news broke that the US federal government’s rapidly increasing debt has lost its final triple-A credit rating, raising fresh concerns for a market that is already quite volatile. Long-term borrowing costs are climbing, and stock values are struggling. Moody’s, a credit rating agency, downgraded the US […]