All articles tagged with #fiscal policy
President Trump issued vetoes on his first bills of his second term, including a bipartisan water infrastructure bill for Colorado and a measure related to the Miccosukee tribe, amid accusations of partisan politics and controversy over Colorado's water projects and tribal issues.
Japan is projected to achieve its first primary budget surplus in 28 years by 2026, as the government aims to balance economic growth with fiscal sustainability, with Prime Minister Sanae Takaichi highlighting the record budget and efforts to address long-standing financial concerns.
Prime Minister Sanae Takaichi's Cabinet has approved a record ¥122.3 trillion budget for the next fiscal year, including issuing ¥29.6 trillion in bonds to cover revenue shortfalls, and plans to submit it to parliament for approval.
Economist David Rosenberg dismisses the US Q3 GDP report's 4.3% growth as misleading, arguing that true growth is only about 0.8% after adjusting for government spending, imports, and savings decline, indicating underlying economic weakness amid debate over inflation and Federal Reserve policies.
The IMF reports positive progress in El Salvador's economic recovery, highlighting faster-than-expected growth, strong fiscal consolidation efforts, and ongoing structural reforms, with negotiations for the second review of the Extended Fund Facility continuing.
The Treasury is promoting a new investment account program, dubbed 'Trump Accounts,' aimed at encouraging families, employers, and philanthropists to contribute funds for children's future expenses, with the program launching before the midterm elections. Despite modest tax benefits and a projected $15 billion cost, the initiative seeks to increase investment among lower to middle-income families and involves contributions from various sources, including corporations and nonprofits, to support children's education and housing needs.
The US Mint has stopped producing the 1-cent coin after over 230 years, citing financial inefficiency and modernization, with the final coins minted in 2025 and set to be auctioned off, marking the end of an era for the penny.
Investors are increasingly viewing large corporations like Microsoft and Airbus as safer investments than governments due to rising sovereign debt, fiscal backsliding, and erosion of the perceived rule of law, leading to a shift in bond market dynamics where corporate bonds often offer lower yields than government bonds.
The ongoing US government shutdown is causing significant economic losses, estimated between $7 billion and $16 billion per week, with the White House's Council of Economic Advisers projecting a $15 billion weekly impact, and experts warn that even a short-term shutdown could lead to lasting economic damage.
Lower UK productivity forecasts by the OBR are expected to lead to increased government borrowing, which may force the government to raise taxes to meet its fiscal rules, especially since productivity growth has been weak since 2010 and has been downgraded from optimistic forecasts, making tax hikes more likely in the upcoming budget.
Chancellor Rachel Reeves is expected to announce a Budget focused on fairness and opportunity, with likely tax increases despite previous pledges not to raise income tax, VAT, or National Insurance, as she aims to address economic challenges and meet fiscal rules.
The IMF forecasts that US debt will surpass Italy and Greece by 2030 due to Trump's tax cuts and increased spending, with US debt rising from 125% to 143% of income, driven by large budget deficits and borrowing, while Italy and Greece work to control their debt levels amidst economic challenges.
The US government's debt burden is on track to surpass Italy's, according to IMF figures, highlighting concerns over rising national debt levels.
The US national debt has exceeded $38 trillion amid ongoing government shutdown and concerns over Congress's ability to manage spending and fiscal discipline, with interest costs and shutdown-related expenses exacerbating the situation.
The US national debt has exceeded $38 trillion for the first time, worsened by a government shutdown that disrupts economic activity and increases costs, raising concerns about fiscal responsibility and economic stability.