Congressional Budget Office

Markets Award Trump Nobel Prize In Economics

It took only nine days in office for President Obama to be nominated for the Nobel Peace Prize. Likewise, the markets seem to have prematurely greeted Trumponomics as an outstanding success. There’s just one thing: Trump hasn’t done anything yet. We’re still weeks away from his inauguration, and details of his economic plans remain scarce.

The Narrative Changes: Republicans "Pour Cold Water" On Trump's Massive Stimulus, Will Block Tax Cuts

Trump’s race to enact a "huge" stimulus went under a caution flag as Mitch McConnell warned he considers current levels of U.S. debt “dangerous”, and said he any tax overhaul should avoid adding to the deficit. "I think this level of national debt is dangerous and unacceptable." McConnell also poured cold water on the idea of a massive stimulus package, effectively laying out markers on taxes and spending.

US Budget Deficit Doubles As November Spending Hits All Time Monthly High

The U.S. budget deficit soared last month, highlighting the growing mismatch between government spending and revenues. The government ran a $136.7 billion deficit in November, more than double that reported one year ago. The reason for the spike: outlays rose roughly 25% compared with November 2015, and hit an all time high of $226.5 billion for the month of November.

A "Big Problem" Emerges For Trump's Economic Plan

Republican lawmakers warn that there could be a major obstacle to enacting President-elect Donald Trump’s agenda: the national debt. As Senator Jeff Flake said of deficits and debt: "I was disappointed that it wasn’t brought up in the campaign. It’s the biggest problem we face, by far."

As The Dust Settles: Goldman Q&A On Life In Trumplandia

Expect the election result to increase policy uncertainty, warns Goldman Sachs, as a result of an increased pace of legislative action in 2017 without clarity, so far, regarding which issues the administration will prioritize. Over the near-term, much will depend on how financial conditions respond to the policy positions of the new administration. Despite today’s favorable market reaction, investors may take a dimmer view on proposals to raise tariffs or otherwise restrict international trade.

Trump Not Seeking Full Repeal Of Dodd-Frank; Opposes Bank Bailout Provision

In what may be bad news for the financial sector, after opposition to grassroots as well as Congressional republicans, Trump appears to be tempering expectations of a full Dodd-Frank repeal, and according to the WSJ, Trump’s transition team is instead focusing on "rescinding or scaling back individual provisions."

Obamacare Is Raising Premiums And Lowering Employment

"My premium is going up 96 percent. Ninety-six percent. My monthly payment, which was the amount of a decent car payment, is now the size of a moderate mortgage..." The law will slow economic growth over the next decade, costing the nation about 2.3 million jobs and contributing to a $1 trillion increase in projected deficits, according to the Congressional Budget Office.

The Boredom Before The Storm

With all the surprising and/or disturbing things going on – Brexit, China’s soaring debt, US/Russia/China saber rattling, the, um, unique US presidential race, the cyber attack that shut down big parts of the US Internet – you’d think that an unsettled world would be reflected in skittish financial markets. Instead we’re getting the opposite...

Paul Volcker Explains Why The Fed Can't Raise Rates

"Our current debt may be manageable at a time of unprecedentedly low interest rates. But if we let our debt grow, and interest rates normalize, the interest burden alone would choke our budget and squeeze out other essential spending. There would be no room for the infrastructure programs and the defense rebuilding that today have wide support."