Moody's warns debt limit breach risk by mid August
Moody's Analytics economists say the Treasury could run out of borrowing room by August 18 if Congress does not raise or suspend the debt limit. They caution of severe market and economic consequences in a stalemate, though expect a last minute deal. The analysis ties the X-date to bond payments and notes political gridlock worsens the outlook ahead of Congress summer recess.
MENTIONED IN THIS ARTICLE
Moody’s Analytics
Treasury Department
Congress
Treasury
Moody’s
Mark Zandi
Christian deRitis
Berard Yaros
Moody's
Federal Reserve
Jerome Powell
Senate
Kevin McCarthy
R-Calif
Zandi
Washington
House
Moody's outlines 14th Amendment path and other workarounds
Moody's analyzes a possible debt impasse as Congress stalls. The firm flags the 14th Amendment route as the most viable last resort, while deriding options like minting a trillion dollar platinum coin and premium bonds as risky gimmicks. It warns of a worst case with six weeks of inaction causing large spending cuts, GDP drop, millions of jobs lost, and major wealth destruction.
MENTIONED IN THIS ARTICLE
Congress
Biden
Moody’s
Moody's
Treasury
Federal Reserve
U.S
Biden seeks tax rise to fund Medicare through 2050s
Biden’s budget calls for raising the Medicare payroll tax on households earning over 400000 to 5 percent, closing ownership loopholes, and channeling net investment income tax proceeds to the Hospital Insurance Trust Fund. It would give Medicare power to negotiate prices earlier, cap some generic drug costs at $2 per month, and remove certain annual mental health visit fees as part of a plan to extend solvency beyond 2050 while aiming to reduce deficits by about 2 trillion over a decade.
MENTIONED IN THIS ARTICLE
Joe Biden
White House
Biden
New York Times
House of Representatives
Kevin McCarthy
GOP
McCarthy
Part A
Medicare Trustees
Fed
Jerome Powell
Russia
Ukraine
PCE
Economics at a crossroads as inflation and growth clash
A vast economy story traces stubborn inflation, Fed rate hikes, and surprising strength in GDP and job markets. Consumers shift spending from goods to services while services price gains persist, housing slumps under high rates, and forecasters split on a looming recession.
MENTIONED IN THIS ARTICLE
Peter Hooper
Deutsche Bank
Hooper
Fed
U.S
National Association For Business Economics
National Association of Realtors
Powell notes inflation slow from goods, services still rising
Powell argues inflation cools mainly from supply chain relief for goods like furniture and semiconductors while services costs stay high due to wages. He cites anticipated housing rent easing by midyear and warns softer labor markets are needed. He also addresses crypto regulation and banks’ participation.
MENTIONED IN THIS ARTICLE
Powell
U.S
Fed
Congress
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Paul M. Krawzak
Col
Justin Sink and
Josh Wingrove
Bloomberg News
FactSet
Labor Department
KPMG
Swank
Moody's Analytics
Fo Industries
CN Aea Tgrary
Residential Septic Service Department
Vido
Norweco
Jet Distributor
Ork
Columbia Rd
Valley City
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