2018-01-13 08:39:00 Sat ET
treasury deficit debt employment inflation interest rate macrofinance fiscal stimulus economic growth fiscal budget public finance treasury bond treasury yield sovereign debt sovereign wealth fund tax cuts government expenditures
The Economist digs deep into the political economy of U.S. government shutdown over 3 days in January 2018. In more than 4 years since 2014, U.S. government shutdown looks likely to end within a specific time frame. Government shutdowns cost a great deal, dampen stock market investor sentiments and expectations, and embarrass congressional members on the Senate and House of Representatives. Democrats now exacerbate procedural uncertainty and hence put pressure on the Republican Senate majority leader over DACA and Obamacare legislative issues. Both DACA and Obamacare are controversial milestones, and Democrats require reasonable solutions to carefully crafting better health care and immigration bills.
President Trump urges Congress to pass a *bill of love* for DACA recipients to stay with legal residency (but not citizenship) in exchange for better border security finance and stronger enforcement of immigration laws. Also, both Republicans and Democrats seek to present their alternative cases for health care reforms in lieu of Obamacare or the Affordable Care Act.
These legislative issues matter because an increase in U.S. government debt and deficit may trigger greater seigniorage in light of robust money supply growth and Treasury bond issuance. The resultant seigniorage discrepancy can translate into inflation that manifests in higher general prices for the typical American consumer. In accordance with its dual mandate of maximum employment and price stability, the Federal Reserve would need to accelerate the current neutral interest rate hike to contain inflation near full employment. These ripple effects may dampen stock and bond prices, investor sentiments, and macroeconomic expectations.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at [email protected] so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-02-04 07:42:00 Monday ET
Federal Reserve remains patient on future interest rate adjustments due to global headwinds and impasses over American trade and fiscal budget negotiations.
2018-05-08 13:39:00 Tuesday ET
The Trump administration weighs the pros and cons of a potential mega merger between AT&T and Time Warner. Recent stock prices show favorable trends for
2018-11-30 12:42:00 Friday ET
Andy Yeh Alpha (AYA) AYA Analytica financial health memo (FHM) podcast channel on YouTube November 2018 AYA Analytica is our online regular podcast and news
2022-05-15 10:29:00 Sunday ET
Innovative investment theory and practice Corporate investment can be in the form of real tangible investment or intangible investment. The former conce
2018-03-11 08:27:00 Sunday ET
At 89 years old, Hong Kong billionaire Li Ka-Shing announces his retirement in March 2018. With a personal net worth of $35 billion, Li has an incredible ra
2019-11-01 12:31:00 Friday ET
Kourtney Kardashian shares the best money advice from her father. This advice reminds her that money just cannot buy happiness. As the eldest of the Kardash