20 Burst results for "Kate Davidson"

Wall Street fears volatility long after election day

Marketplace with Kai Ryssdal

05:18 min | 5 months ago

Wall Street fears volatility long after election day

"Let's start with election chaos kate I'll start with you is. That the thing that would cause markets to bulk like there has been this this increasing conversation about expectations of volatility. If there is a contested election, what does it mean for among other things the economy? Well. You know as I think a lot of us who cover the economy like to point out the stock market isn't the economy, but it's a really important. Part of it is important signals that it sends and right now I think that what we're hearing and seeing and a number of different ways is that Yeah Wall Street is getting nervous I. I. Remember a few weeks ago getting an analyst note from a research firm here in DC laying out all the various scenarios of what might happen and what kind of chaos it could trigger and it just seemed kind of surreal reading it and I asked one of the authors and he said we're just getting so many questions from our investor clients about this issue, they want to know what is going to happen. They WANNA be prepared. You know typically in history. We've had one one of two scenarios either Republican Windsor a Democrat wins in this time it's not clear or you know may we might might not be clear who the winner is for some time maybe the president could challenge legitimacy of the election. There's there's a lot that could happen in Wall Street does not like uncertainty. Yeah Gino what does it mean? If Wall Street starts to get nervous not that I think Wall Street's GonNa Swoop into the rescue here but you know what could that lead to? You know I think it's interesting because this isn't a scenario in which it's really easy to just come up with an immediate solution given enough pressure. You know it is probably the case that we are not going to happen immediate conclusion to the vote count where we're likely not going to know who won on election day, and that's not really a changeable fact. So some some period of uncertainty lies ahead of us I think the real question is whether this election ends up being contested I. think that's clearly the thing that makes investors most nervous right now and I I just don't know what happens in that. Instance because you don't see situation where it would really be in anybody's interest you know there's there's no, it's it's not obvious that a real plummet in stock prices would be the thing that would prompt president trump not to contest this election. Since you know presumably he he would only be contesting if he had already lost and so I think there's there's really opened brushes some real reasons for legal to be nervous in it. That's why you are seeing what keep mench in which is just you know investors increasingly kind of scratching their heads and and looking toward the future with a lot of a lot of uncertainty. Right. Well, the other thing that's happening with all of this uncertainty exacerbated by of course, the Supreme Court fight is is that Congress has I. Think has been pretty effectively taken off the ball with respect to relief, right? Kate. What happens if if literally no more help comes from Congress on top of everything else. That's right I mean it seems like there's a there's perhaps a bigger risk from that scenario for the economy right You know there might be some turbulence around or after the election we don't know what that looks like or how long stock market turbulence. But for the for the fundamentals of the economy we are right now in this period seems really critical. People are trying to figure out what is happening right now what what are we going to see in the data because of course in? The end of July these enhanced unemployment insurance benefits expired and I think that a lot of people who had been receiving those maybe they'd managed to save up some money. They were drying down savings. We didn't see an immediate drop off from the expiration of those benefits, but there are definitely signs that things are slowing and You know we've heard from a number of economists on. We heard it again from Fetterman Jay Powell this week that you know eventually with Out. More fiscal support we're probably going to start to see the negative effects from some of that relief and it's not just uninsured and empl unemployment insurance. It's you know extending credit for small businesses. It might be you know around another round of stimulus checks just to help give people a little more of a cushion. So those are things that both sides want but there are some bigger issues that are kind of keeping them from coming together on this effort DOES THIRTY SECONDS LEFT GINA? Where do you think whereas the urgency? What's IT GONNA. Take. Yeah I mean I think it is a really interesting question what we have seen some sort of centrist Democrats in moderate Democrats really starting to get a little bit nervous in maybe push for some sort of compromise which I think is probably the best hope for compromise before the election I've not heard that we're GonNa get there an instance that we don't. You know there are real risks for the economy ahead. If we do not as as Keith mentioned if we do not have some more spending here I think it's one thing that's worth noting. I think a lot of people are taking comfort in pretty solid economic data right now but. A lot of American households build up solid savings buffers off the spending that happened earlier, and now that is kind of getting worn down in. So at some point in time that they will get through that. Kate Davidson at the Wall Street Journal and Genus smiling at the New York. Times. Thanks so much you too. Thank you. Thanks smelly.

President Trump Congress Kate I Wall Street Journal Contesting Kate Davidson Kate Jay Powell Windsor Analyst Gino New York Supreme Court Gina
Powell says there’s no rulebook for trade war, pledges to act as appropriate to sustain economy

Marketplace with Kai Ryssdal

06:28 min | 1 year ago

Powell says there’s no rulebook for trade war, pledges to act as appropriate to sustain economy

"Interestingly early enough. This was a week when what the Federal Reserve did was less relevant than what chair Jay Powell said there were other things said about this and the global economy. Let me this week and so now we are going to say some things we being genus like the New York Times Gaye. Davidson is at the Wall Street Journal everybody I Juno. Let me start with you and chair. Powell al and I want your reaction to this thought the idea that does seem to be gaining strength out there that the more Jay Powell talks the less clear. The Federal Reserves Intentions about this economy discuss. I think that might've been a little bit what he was going for this week so yeah. I kind of think think I was talking to a bunch of investors about this yesterday and today and I think that the consensus is that he didn't do that that of a drop this week so basically eh pal hasn't kind of tough job right now because they're setting policy based on trade policy which is highly uncertain and you just never know what's going to happen with it in so. I think what the the Fed wanted to communicate this week which just that they don't know what happens next. They haven't decided for sure. They think it could be a rate cut. They don't know when that's going to come and they don't WanNa guarantee that it is going to materialize in so I think Powell went out trying to convince the markets that they really don't know and I think he was pretty successful at doing that. Wow Kate Davis. It's in what do you make of that and also this growing idea it's coming from the head of the ECB and it's coming from the OECD store yesterday on on how people are beginning to say look fiscal fiscal policy makers that is politicians. You GotTa do something because bankers can't do it all central bankers yeah. I think I think that gene is absolutely right. I thought one of Jay pals responses was was kind of funny. He was sort of asked. When do you know whether you're at the point where you need to cut rates further when you you've cut them enough when he sort of said we'll we'll. you know when we've done enough. We'll stop I mean he he really didn't give I think it was intentionally vague but yes on the on on the Fiscal Policy Front Powell joins a long line of Fed Chairman and women who have argued that fiscal policy makers need to do more if they want to see more economic growth that the Fed can only do so much to sort of support. GDP their goals are maximum employment in stable inflation. Shen in generally that leads to you know pretty good economic growth if things start to go self though in the Fed doesn't have some sort of magic magic tool that they've just been holding onto that we don't know about that's GONNA juice. Everything fiscal policy makers need to be thinking about the effects of their policy and so specifically right now. We're talking about trade. That's weighing on things Gina. Let me ask you this about a report that came out from the New York. Fed they basically said Oh look consumers. Are we're still strong. Businesses aren't doing much the question has to be how long does that endure an and I know I asked this a lot but holy cow show but I mean it's the fundamental question about this business cycle because the consumer is seventy percent of the American economy and they haven't cracked yet and that's why we have seen and such you know really persistently solid growth here. and I think the big question is how long can that process. Because what we've seen is some hints around the edges edges that consumers are getting a little bit spooked by the trade war you know the University of Michigan survey looked weak last month and the preliminary September numbers showed a little bit of a bounce back but it wasn't the bounceback you would have hoped for so I think the real question is you know those surveys tend to correlate pretty poorly overspending but if you would see it bleed over into actual activity of any kind of problem on your hands Kate about trade and consumers the president said today at one of those joint press conferences. He does with visiting heads of state. This was the Australian Prime Minister Head of government. I suppose somebody will correct me. I'm sure he said you know. I don't think I need to China trade deal before the election. If you do the regression analysis regression regression analysis and take the politics out of that do you by who I don't know I think that I think that we all know a lot. Let's let's say that there's not some agreement when Chinese officials come in early October. That's sort of the next big development. They're gonNA come to Washington. If there's no progress made then can you know as of now the US is still scheduled to raise tariffs on October fifteenth on a bunch of consumer goods. We already have tariffs on three hundred sixty billion dollars of of imports from China so excuse me not not consumer goods on the fifteenth by December Fifteenth. There's another round that would sweep in a bunch of consumer goods. I mean at that point. We'll be we'll be we have having tariffs on almost everything from China and it's hard to imagine you just talked about the effect on consumers. It's kind of hard to imagine that you know being sustainable sustainable through an election year so I I have to think that at some point the administration except some kind of deal okay so gina. I wanted to do one last thing with you. You've got this is. GonNa Ridiculous. You're going to have forty five seconds to do it. This thing that's been happening. in the what's called the overnight repo market right these banks lending to on on the new one another. Sh- super short term in order to to make their books workout. We did an interview on it on Wednesday. It's incredibly weedy but the reason I'm asking is that the New York doc Fed said today. It's GONNA keep making these emergency overnight monies available until the tenth of October. Are you stressed about this or is it normal ish. It's not normal so I think it's important to recognize that but it's not a reason for outside stress so basically what happened is the. Fed has been drinking. Its balance sheet for a long time which we've talked about and they got to a point where at very unusual moments when a lot of cash comes out of this market really quickly and there's a liquidity crunch bank serves us to step in to fix that but now bank reserves are scarce enough because of the Fed's balance sheet shrinking that they're not doing that and so the Fed finds itself having a couple of options. It can keep doing these as emergency operations. Would you WanNa do it can basically offer an option to banks where they can switch treasuries for reserves which it's talked about but it's not there yet and they would take watt implement or it can keep growing. It's start growing balance sheet again just a little bit and so it's really going to be a debate over. Which of those sort of your least worst option look. The least worst is how we're GONNA leave this holy cow Gina Smile he dons and Kate Davidson in the Wall Street Journal. Thanks you too.

Federal Reserve Jay Powell Gina Smile China Wall Street Journal FED Kate Davidson Federal Reserves Intentions Fed Chairman New York New York Times Kate Davis ECB Gaye Oecd United States Washington University Of Michigan Shen
"kate davidson" Discussed on KCRW

KCRW

03:42 min | 1 year ago

"kate davidson" Discussed on KCRW

"Broadcasting Kate Davidson explains to understand how these laws work step into this Portland warehouse and meet Dave stains be for kind of checking out the shelves looking to see what we have in stock right now stains be Renzi commerce for made in Oregon which sells all kinds of distinctly Oregon products pottery Pendleton blankets and this very popular hat it's a trucker hat it's got a patch that says Oregon is above California there's a lot of Oregonians that just chuckle in love that thing as I said it distinctly or again now another distinct thing about or again is it has no sales tax of its own so this year it's been a huge change for made in Oregon to have to collect tax for online sales in about a dozen other states Colorado Georgia Illinois Maryland Michigan Minnesota stains be says it's a headache he estimates it will cost nearly forty thousand dollars and staff time and software to comply with the tax rules of dozens of states and companies around the country are confronting the same situation Diane Yetter is the founder of the sales tax institute in Chicago so sales tax before the Supreme Court decision last year was based on where a company maintained physical presence and so the easy way to think about that is where did you have a store on office a manufacturing plant a warehouse but in what's known as the way fair case the court looked at the explosion of online shopping and to the erosion of sales tax revenue it ruled that companies can also establish an economic presence in the state making them responsible for collecting sales tax that was good news to Washington state representative Gail Tarleton. the way fair decision is one of those rare things that happen where we say everyone has to play by the same set of rules if you are an online customer it's the same as walking into a store front today almost every state including Washington requires online businesses to collect sales tax once retail sales pass a certain threshold save a hundred thousand dollars Charlton says that that money matters in Washington which has no income tax and relies heavily on sales taxes to fund services we're paying for health care were paying for education we're paying for affordable housing and everything that our communities need to thrive let the US senators from Oregon in New Hampshire where there is no sales tax are worried about how businesses are faring in this post we fare world they've introduced legislation to prevent remote sellers from having to collect sales tax until twenty twenty one to give them more time to prepare an Oregon senator Jeff Merkley says the measure would exempt small businesses altogether this bill will say that small businesses across the nation those that have less than ten million dollars in sales do not have to collect sales taxes for the ten thousand taxing jurisdictions across the country he says big businesses can handle the complexities of sales tax compliance they have the infrastructure to be able to do this and that's not such a burden but to a small business it's an enormous burden there are signs some states may be sympathetic to that argument a handful have already changed the thresholds they use to determine which remote company should collect sales tax recognizing too many small businesses were affected in Portland Oregon I'm Kate Davidson for marketplace. adapt or die right I mean it sounds.

Kate Davidson Portland hundred thousand dollars forty thousand dollars ten million dollars
Japan hosts G20 summit

Marketplace with Kai Ryssdal

04:29 min | 1 year ago

Japan hosts G20 summit

"So look, let's do this. Let's just put today's program on hold K till President Trump and Chinese president Xi didn't paying have their meeting over the g twenty in Osaka. Saturday morning Japan time, it's only going to be another five maybe six more hours. We'll have to wait because honestly, a whole lot of what's going to happen in this economy and in China's economy in the short and medium-term kinda depends on what happens at that meeting radio deadlines being what they are though. We do kind of have to keep going so we will do that on this Friday with McCain's from the economist Kate Davidson from the Wall Street Journal. Hey, everybody. Let me start with you. And I guess ask you to test my premise. I'm I for a fact but there's a lot riding on this g twenty meeting. Yeah. Yeah. There is rather low writing on it. This is the big one so that has been progress in Nick. Between China and America has stoled that was a big falling out a little while ago. And this is the meeting where they decide whether things can get back on track. And if they can't then not means tires of twenty five percent around three hundred billion dollars worth of imports. That would not be great for consumers in America. If a business confidence, all sorts of things, we're Kate with that being the sword hanging over sward. How about soared hanging over everybody's head. What do you think's gonna happen? Well, I think that a real, it's really hard to say right. I think that some corporate lobbyists are hoping that the talks can produce a plan to finish negotiations by specific deadline. So it's not as other gonna come out of meeting with some kind of plan. Right. But the, the hope is that they will agree to resume talks in a meaningful way. That is yes. Sort of setting setting a firm, timeline. You know, both sides are under pressure here to deliver something. And presumably if there, if there is some kind of sign of progress President Trump would refrain from moving ahead with tariffs during that time period. I think that that's the that's the hope you know, there's, there's other benefits like a ceasefire on trade could give the two sides momentum. And like a possible path to sort out a number of other issues. Right. You know, China's hold on the South China Sea, and, and the US campaign against Chinese technology firms. You like wow, way over security concerns. So there are other things riding on this as well. She made talk. Talk to me for a second. I mean, we kind of have a sense of what President Trump has going on here in terms of what's on the line for him, right? Economic expansion and, and jobs in domestic growth, your talk to me about Xi Jinping would, you know and what he's got a at risk. Yeah. So, so the Chinese have a really complicated situation so, so festival, you've got this internal battle politically. So you have a group of reformers, who wanted to almost take advantage of the pressure from the Trump administration to get through some kind of liberalization. And then you have the hardliners the hawks who are very worried about China, you know, being seen to be pressured by the Trump administration to have the Americans undermined the sovereignty and to make them look weak. Right. So, so Xi Jinping has got to weigh up those two and, and make sure that the political blowback the political fallout isn't too great. Obviously economically. The Chinese economy is going through a dicey time that trying to deleverage as a lot of debt swilling around that Konami. And if growth, Fulton than than achieve not becomes more difficult Kate less than on this, and then I want to move on. But, but put this all in the context of. A global economy which as smell Luda to is, is slowing certainly in China arcana me showing some signs. It's there are. There are some peril. Yes, there is. I think if we're thinking about it through the lens of just US. Policymakers trade is really the, the biggest uncertainty right now we have the fed thinking about whether they need to cut interest rates. They've signaled pretty strongly that they'd be willing to do that. In the coming months, if the trade tensions worsen, so you said there's a lot riding on this. I think that I think officials over at the fed will be paying close attention to developments this weekend. They're going to be meeting again at the end of July fed chairman Jerome Powell was asked his last press conference, you know, if there was not a trade if there was a trade deal with that take a rate cut off the table. He said, not necessarily, but they're all it's all feels very intertwined. So I think yeah, the next several months, depend greatly on what happens this weekend.

China Donald Trump Kate Davidson President Trump Xi Jinping United States FED Osaka Japan Wall Street Journal South China Sea Mccain America Jerome Powell Konami Nick Chairman
"kate davidson" Discussed on 600 WREC

600 WREC

04:17 min | 2 years ago

"kate davidson" Discussed on 600 WREC

"The protracted spending battle that ended last Friday following the longest government shutdown US history was just a prelude to other fiscal fights slowing for the White House and congress this year. Here's what's ahead from Wall Street Journal reporter, Kate Davidson, Kate set this up. Nineteen gordon. I know it's hard to believe it's the later this year, we're talking about not even that far away. We just finished this battle of it a shutdown hunting a border wall, but pretty much congresses turnaround in pretty short order at start thinking about funding for the next year. Confusing because as I said we just finished funding settled the spending Bill for the current fiscal year. But the new one starts on October first. So basically that means by the end of the congress has to sort it out, you know, how much money they're going to be spending. They have cells which can take a long time, and they have to approve that new spending by then. Or we can have another government shutdown one of the things we'll hear about is the federal borrowing limit explain that battle. What that is. That's right. Well, that's more colloquially known as the debt ceiling, which probably familiar with that term. It's just me. And you know, the treasury has a limit on how much money they can borrow. And this is a common occurrence in recent years every couple of years we have to raise that federal borrowing a women, and that's something that was created in the early days of the country. It's actually. Congress. Congress can't just borrow the money themselves treasury department that has that a forty, but because of checks and balances congress has to sign off on it. But it's kind of a lot of people say, it's really outlived its usefulness has just made it more difficult for treasury to borrow money to pay for things that congress has already authorized what does it mean to now that we have a divided congress? Certainly make things pretty tricky. I mean, it's. So we've got a few heavyweight impact here. So we have a democratic controlled house when it comes to the debt ceiling like Democrats in the past has always advocated for raising the bar and limited without any strings attached. That is actually mean when President Obama was in the White House and Republicans win control of congress. They used to argue that we shouldn't raise the borrowing limit without is doing something to rein in spending. We should have some kind of some some provisions to reduce spending Democrats know that this is really not the place for that. We should have that conversation when we're starting out the budget one way approving spending bills. In the Bering limit. They would say the conversation. We're having is really just we're paying the credit card saying, we're not going to raise the debt limit mostly convict. You spending is like saying spending is out of control. We're not going to pay the credit card Bill. And so that's why these fights would happen. They would argue over whether we should do this. You know with strings attached strings attached, Democrats, I think would probably support reading the borrowing limit cleanly. So they're not going to be much trouble. It's just gonna depend on what Republicans do. And of course, their party. The president is in the White House. You would think they would want to do it too. But it would be assuming that congress will operate smoothly. And we know that they don't usually. So it's sort of it's really unclear this time round that's going to happen. We're speaking with Kate Davidson, Wall Street Journal reporter talking about the spending fights that loom between the White House and congress wasn't it last year where the president asked all departments to cut five percent of that. Does that help and mighty do that again? Yes. So he so he mentioned that he was going to do that. And I think he was actually talking about for this coming year. So for this round of budgeting that's going to get underway and a few weeks he wants to see the agency's trimming, their budgets, and that was sort of a nod to these deficits that we've been we've talked about this. We're seeing them increase getting bigger and bigger and bigger several reasons behind that. But I think the president. Vigers are making him. Was you know, this is a potentially a problem part of it is due to the tax cut because we have lost revenue coming in from that we now, and of course, spending increasing. Thanks, Kate, Wall Street Journal reporter Kate Davidson, eighteen minutes now after the hour..

congress Kate Davidson White House Wall Street Journal president reporter treasury Congress US President Obama eighteen minutes five percent
"kate davidson" Discussed on WSJ What's News

WSJ What's News

03:50 min | 2 years ago

"kate davidson" Discussed on WSJ What's News

"The Federal Reserve held short-term interest rates steady and Senate strong signal to date that future rate hikes are on hold in its statement released at the end of its two day policy meeting. The fed said it would be patient concerning future adjustments to interest rate policy stocks rose sharply after the meeting concluded adding to gains made earlier and Wednesday session. Joining us from Washington is Wall Street Journal reporter, Kate Davidson, Kate what was different about this statement was the word patient missing. From the statement of the meeting two months ago at that meeting did policymakers maintain a clearer bias toward continued rate hikes. Yes, I think that that is definitely fair to say Charlie in December. We heard fed chairman Jay Powell, come out and talk through fairly confidently about the the fed officials projections for rate increases and twenty nineteen they have this thing that's called the dot plot. Which sort of a show is where officials think rates are going to be and looking at that, you know, imply that the the median forecast from us. Officials was for two rate increases in two thousand nineteen we heard a much different tone at the meeting today. And in the statement today, which said we'll actually we're going to be to be patient. And and that was a word as he said that wasn't in the statement in December. And what was taken out of the statement? This time was sort of a hallmark of the of the statement ever since officials began raising rates for the first time in in years back in twenty the end of twenty fifteen they said that they were going to pursue policy of gradual rate increases raise rates gradually over time kind of signaling that they were going to continue on this path gradual or gradually was not in the statement today, which is the strongest signal yet that the fed is going to be on hold for a while. So basically, there was less guidance. In the statement at the end of today's meeting about future rate hikes. They're gonna leave it sort of open ended. Yes, it was a just just in terms of word word length. The statement was much shorter. Which is something that think chairman Powell has has implemented since he. Came on board trying to tighten up that statement. So hopefully, a little bit more clear, but yes, it had the effect of of taking out some of that guidance. And but we did have the benefit this time of having a press conference after the January meeting which in a new thing this year, they're going to be eight press conferences last year. We only have four so we got to hear from German Powell about, you know, why why some of these changes to the statement were made in a centrally he emphasized as he said recently in public statements that the fed is going to be even much more data dependent just relying on incoming data to guide them. So they didn't want to give too much of hint right now as to where rates might go because there's a lot of uncertainty. What reasons exactly did the fed, and or fed chairman pal give I signaling that interest rates would remain steady for the time being were there specific factors referred to. There are few. Yes. I mean, there have been some specific things that have changed since December. It wasn't all that long ago. But there have been some changes for one. Global growth has been weak, and that has really important implications for the US and German palace. That story is continuing. It's also been kind of hard to miss in Washington. We've had this big government shutdown and while shutdowns generally don't have a large impact on the macaroni Connie, this was the longest shutdown in US history. And so it will have some kind of fact on first quarter GDP, and there's some questions about how big that will be. There's also the looming possibility of another shutdown in a couple of weeks. Lawmakers only extended the the government spending or funding for three weeks, and they have to do this all over again before February fifteenth, and if there's another shutdown DACA, potentially have a much bigger effect. And also Finally Mr Powell noted that financial conditions began to tighten in the fourth quarter. And and that has persisted..

Federal Reserve Mr Powell chairman Washington Jay Powell Charlie US Wall Street Journal Senate Kate Davidson reporter German palace three weeks two months two day
"kate davidson" Discussed on WSJ What's News

WSJ What's News

03:50 min | 2 years ago

"kate davidson" Discussed on WSJ What's News

"The Federal Reserve held short-term interest rates steady and Senate strong signal to date that future rate hikes are on hold in its statement released at the end of its two day policy meeting. The fed said it would be patient concerning future adjustments to interest rate policy stocks rose sharply after the meeting concluded adding to gains made earlier and Wednesday session. Joining us from Washington is Wall Street Journal reporter, Kate Davidson, Kate what was different about this statement was the word patient missing. From the statement of the meeting two months ago at that meeting did policymakers maintain a clearer bias toward continued rate hikes. Yes, I think that that is definitely fair to say Charlie in December. We heard fed chairman Jay Powell, come out and talk through fairly confidently about the the fed officials projections for rate increases and twenty nineteen they have this thing that's called the dot plot. Which sort of a show is where officials think rates are going to be and looking at that, you know, imply that the the median forecast from us. Officials was for two rate increases in two thousand nineteen we heard a much different tone at the meeting today. And in the statement today, which said we'll actually we're going to be to be patient. And and that was a word as he said that wasn't in the statement in December. And what was taken out of the statement? This time was sort of a hallmark of the of the statement ever since officials began raising rates for the first time in in years back in twenty the end of twenty fifteen they said that they were going to pursue policy of gradual rate increases raise rates gradually over time kind of signaling that they were going to continue on this path gradual or gradually was not in the statement today, which is the strongest signal yet that the fed is going to be on hold for a while. So basically, there was less guidance. In the statement at the end of today's meeting about future rate hikes. They're gonna leave it sort of open ended. Yes, it was a just just in terms of word word length. The statement was much shorter. Which is something that think chairman Powell has has implemented since he. Came on board trying to tighten up that statement. So hopefully, a little bit more clear, but yes, it had the effect of of taking out some of that guidance. And but we did have the benefit this time of having a press conference after the January meeting which in a new thing this year, they're going to be eight press conferences last year. We only have four so we got to hear from German Powell about, you know, why why some of these changes to the statement were made in a centrally he emphasized as he said recently in public statements that the fed is going to be even much more data dependent just relying on incoming data to guide them. So they didn't want to give too much of hint right now as to where rates might go because there's a lot of uncertainty. What reasons exactly did the fed, and or fed chairman pal give I signaling that interest rates would remain steady for the time being were there specific factors referred to. There are few. Yes. I mean, there have been some specific things that have changed since December. It wasn't all that long ago. But there have been some changes for one. Global growth has been weak, and that has really important implications for the US and German palace. That story is continuing. It's also been kind of hard to miss in Washington. We've had this big government shutdown and while shutdowns generally don't have a large impact on the macaroni Connie, this was the longest shutdown in US history. And so it will have some kind of fact on first quarter GDP, and there's some questions about how big that will be. There's also the looming possibility of another shutdown in a couple of weeks. Lawmakers only extended the the government spending or funding for three weeks, and they have to do this all over again before February fifteenth, and if there's another shutdown DACA, potentially have a much bigger effect. And also Finally Mr Powell noted that financial conditions began to tighten in the fourth quarter. And and that has persisted..

Federal Reserve Mr Powell chairman Washington Jay Powell Charlie US Wall Street Journal Senate Kate Davidson reporter German palace three weeks two months two day
"kate davidson" Discussed on News Radio 690 KTSM

News Radio 690 KTSM

03:33 min | 2 years ago

"kate davidson" Discussed on News Radio 690 KTSM

"The Congressional Budget Office within just a couple of years that it just the interest payments alone on our data are going to be as much as we spend on the entire Medicaid program by twenty twenty three will be bigger than we spend on the entire defense budget. So really eye opening numbers here goodness. So many of us who might be alarmed by that thinks surely this is a wakeup call. But we've been down this path before though, right? I mean what what could happen. I guess in some of these may be worse case scenarios that are developing here. Yeah. Well, I think that the economic research has showed us that, you know, high high deficits and high high high data courses is not good for the economy over the long run. And this is a big part of the debate that lawmakers were having and and policy wonks or having around the tax cuts last year. You might remember. There was a big debate about tax cuts pay for themselves. And the reason why that was so important is that, you know, the the first of all Republicans are arguing that it was tax cuts. We're going to boost the economy, I think that definitely this year we have seen some of that consumers are spending a lot more that's driving this uptick and economic growth, but the concern from a lot of people was well, you know, we're going to cut taxes we need to cut spending as well because we're going to have lower revenues. You know, they're they're people aren't going to be paying as much as much in taxes seems to make sense. But the argument went well now it's going to generate so much growth. People are going to be making more money. More people are going to be. Working more revenues coming in. And it doesn't look like that's really what's happening. And so essentially what that means is that we had a much higher deficit this year than we did last year. And the government is set to issue a whole lot more get this year in order to get the cash that it needs to on the government operations because we just don't have the same revenue that you would expect to see it in an economy. That's doing this. Well, I mean, essentially revenue kinda were steady, but you expect them to be a lot higher. So anyway, that's a very long way of saying that we're continuing to spend a lot more. We didn't cut spending in response to the tax cuts actually the government passes, great big spending deal. So that's just me and more more and higher borrowing and it markets get nervous about that. Because again, it could weigh on economic growth crowd out private investment, speak with Kate Davidson, Wall Street Journal reporter about her story entitled US on a course to spend more on debt. Then defense is possible that things could. Reverse like that happened in the nineties. Right. We went from a debt to a surplus. Right. Exactly. You know, we we talked to someone in our story. Who said, look, you know, sometimes deficits are not all bad. Sometimes they're necessary to help get the economy really going and bring in more workers, enter workforce, and this this we talk about these things like they're never going to change like certainly policy makers at any time could take a big action to reverse things. And and I think there are a lot of a lot of people deficit. Hawks think tanks and people were kind of outside government looking in saying, wow, we really need to confront this. Of course. Now after the midterms we have a divided congress. So it's really unclear whether they're going to be able to come together and make these big really hard decisions to reverse this trend. Thanks, kate. That's Wall Street Journal reporter Kate Davidson, it is twenty minutes now in front of the hour on This Morning, America's.

Kate Davidson Wall Street Journal Congressional Budget Office reporter twenty twenty America twenty minutes
"kate davidson" Discussed on 600 WREC

600 WREC

03:32 min | 2 years ago

"kate davidson" Discussed on 600 WREC

"The Congressional Budget Office within just a couple of years that it just the interest payments alone on our debt are going to be as much as we spend on the entire Medicaid program by twenty twenty three and will be bigger than respond on the entire defense budget. So really eye opening numbers. Yeah. Goodness. So many of us who might be alarmed by that think surely this is a wakeup call. But we've been down this path before though, right? I mean what what could happen. I guess in some of these may be worse case scenarios that are developing here. Yeah. Well, I think that the the economic research has showed us that. Hi, high deficits and high high high data courses is not good for the economy over the long run. And this is a big part of the debate that lawmakers were having and and policy wonks or having around the tax cuts last year. You might remember. There was a big debate about tax cuts pay for themselves and reason why that was so important is that, you know, the the first of all Republicans are arguing that it was tax cuts are going to boost the economy, and I think that definitely this year we have seen some of that consumers are spending a lot more that's driving uptick an economic growth, but the concern from a lot of people was well, you know, we're going to cut taxes we need to cut spending as well because we're going to have lower revenues. You know, they're they're people aren't going to be paying as much as much taxes seem to make sense. But the argument went well now it's going to generate so much economic growth. People are going to be making more money. More people are going to be working more revenues coming in. And it doesn't look like that's really what's happened. And so essentially what that means is that we had a much higher deficit this year than we did last year. And the government is set to issue a whole lot more get this year in order to get the cash that it needs to government operations because we just don't have the same revenues that you would expect to see it in an economy that's doing this. Well, I mean, essentially revenue kinda were steady, but you expect them to be a lot higher. So anyway, that's a better way of saying that we're continuing to spend a lot more. We didn't cut spending in response to tax cuts actually the government passes. Great expanding deal. So. Just me and more more and higher borrowing and it markets get nervous about that. Because again, it could weigh on growth. Out private investment, speak with Kate Davidson, Wall Street Journal reporter about her story entitled US on a course to spend more on debt than defense. Is it possible that things could reverse like that happened in the nineties, right? We went from a. Debt to a surplus. Right. Exactly. You know? And we we talked to someone in our story who said, look, you know. Sometimes deficits are not all bad. Sometimes they're necessary to help get the economy really going and bring in more workers, enter the workforce, and this this we talk about these things like they're never going to change like certainly policy makers at any time could take a big action to reverse things. And and I think there are a lot of a lot of people deficit. Hawks think tanks and people were kind of outside government looking in saying, wow, we really need to confront this. Of course. Now after the midterms we have a divided congress. So it's really unclear whether they're going to be able to come together and make the big really hard decisions to reverse this trend. Thanks, kate. That's Wall Street Journal reporter Kate Davidson, it is twenty minutes now in front of the hour on This Morning,.

Kate Davidson Wall Street Journal government Congressional Budget Office reporter twenty twenty twenty minutes
"kate davidson" Discussed on WWL

WWL

04:58 min | 2 years ago

"kate davidson" Discussed on WWL

"Has risen from five point one trillion dollars to fifteen point nine trillion dollars. But financing all of that debt has not been a problem. Low inflation and strong global demand for safe US treasury bonds held the government's interest cost down. That's in the process of changing interest rates are rising. Plus, there's the sheer scale of debt being accumulated by the federal government that scenario eventually could crowd out other government spending priorities and rattle markets. It's a story by Wall Street Journal reporter, Kate Davidson, Kate explain we've taken a lot of of that in the year since. The financial crisis, which tends to happen. Sometimes you have to governments decide to spend more to try to stimulate the economy and not sweat redid here in the US interest rates have been very very low. Right. The fed had held interest rates near zero for a long time. So the interest payments on that debt or actually not that high. But that's obviously starting to change as the fed is starting to raise rates again. So the projections for some of these numbers, I really astonishing we expect the Congressional Budget Office is within just a couple of years that it just the interest payments alone on our debt are going to be as much as we spend on the entire Medicaid program. You know by twenty twenty three it will be bigger than respond on the entire defense budget. So really eye opening numbers. Yeah. Goodness. So many of us who might be alarmed by that think surely this is a wakeup call. But we've kind of been down this path before though, right? I mean what what could happen. I guess in some of these may be worse case scenarios that are developing here. Yeah. Well, I think that the the economic research has showed us that, you know, high high deficits and high high high data courses is not good for the economy over the long run. And this is a big part of the debate that lawmakers were having and and policy wonks or having around tax cuts last year. You might remember. There was a big debate about tax cuts pay for themselves and reason why that was so important is that, you know, the the first of all Republicans are arguing that it was tax cuts are going to boost the economy, and I think that definitely this year we have seen some of that consumers are spending a lot more that's driving uptick and economic growth, but the concern from a lot of people as well. You know, we're going to cut taxes we need to cut spending as well because we're going to have lower revenues. You know, they're they're people aren't going to be paying as much as much in taxes seems to sort of make sense. But the argument went well now it's going to generate so much economic growth. People are going to be making more money. More people are gonna be. Be working more revenues coming in. And it doesn't look like that's really what's happening. And so essentially what that means is that we had a much higher deficit this year than we did last year. And the government is set to issue a whole lot more get this year in order to get the cash that it needs to fund government operations because we just don't have the same revenue that you would expect to see it in an economy that's doing this. Well, I mean, essentially revenues kinda were steady, but you'd expect them to be a lot higher. So anyway, that's a very long way of saying that we're continuing to spend a lot more. We didn't cut spending in response to the tax cuts actually the government passes, great big spending deal. So that's just me and more more and higher borrowing and it markets get nervous about that. Because again, it could weigh on economic growth out private investment, speak with Kate Davidson, Wall Street Journal reporter about her story entitled US on a course to spend more on debt, then defense is it possible that things could. Reverse like that happened in the nineties. Right. We went from a debt to a surplus. Right. Exactly. You know, we we talked to someone in our story. Who said, look, you know, sometimes deficits are not all bad. Sometimes they're necessary to help get the economy really going and bring in more workers into the workforce. And, you know, this this we talk about these things like they're never going to change like certainly policymakers at any time could take a big action to reverse things. And I think there are a lot of a lot of people deficit hawks think tanks, and people were kind of outside government looking in saying why we really need to confront this. Of course now after the midterms we have a divided congress. So it's really unclear whether they're going to be able to come together and make these big really hard decisions to to reverse this trend, Kate that's Wall Street Journal reporter Kate Davidson, it is twenty minutes now in front of the hour on This Morning, America's first news. What's in store? This holiday at your local Staples giving and receiving an receiving some more this.

Kate Davidson Wall Street Journal reporter US fed federal government Congressional Budget Office Kate Staples twenty twenty Medicaid America nine trillion dollars one trillion dollars twenty minutes
"kate davidson" Discussed on WTMJ 620

WTMJ 620

04:58 min | 2 years ago

"kate davidson" Discussed on WTMJ 620

"Has risen from five point one trillion dollars to fifteen point nine trillion dollars. But financing all of that debt has not been a problem. Low inflation and strong global demand for safe US treasury bonds held the government's interest costs down. That's in the process of changing interest rates are rising. Plus, there's the sheer scale of debt being accumulated by the federal government that scenario eventually could crowd out other government spending priorities and rattled markets. It's a story by Wall Street Journal reporter, Kate Davidson, Kate explain taken on a lot of that in the years since. The financial crisis, which tends to happen. Sometimes you have to decide to spend more to try to stimulate the economy. And that's what we did here in the US. But interest rates have been very very well. Right. If that had held interest rates near zero for a long time, so the interest payments on that debt or actually not that high with that obviously starting to change as a fat is starting to raise rates again. So projections for some of these numbers, really astonishingly expect the Congressional Budget Office is within just a couple of years. The it just the interest payments alone on our that are going to be as much as we spend on the entire Medicaid program by twenty twenty three it will be bigger than we spend on the entire defense budget. So really eye-opening numbers. Goodness. So many of us who might be alarmed by that think surely this is a wakeup call. But we've been down this path before though, right? I mean what what could happen. I guess in some of these may be worse case scenarios that are developing here. Yeah. Well, I think that the economic research has showed us that. Hi, high deficits and high high high data courses is not good for the economy over the long run. And this is a big part of the debate that lawmakers were having and and policy wonks having around the tax cuts last year. You might remember. There was a big debate about compacts pay for themselves and reason why that was so important is that you know, that the first of all the public into arguing that it was tax cuts are going to boost the economy, and I think that definitely this year we have seen some of that consumers are spending a lot more. That's driving up take an economic growth, but the concern from a lot of people was about, you know, we're going to cut taxes we need to cut spending as well because we're going to have lower revenues. They're they're people aren't gonna pay as much as much in taxes to make sense. But the argument went well now it's going to generate so much economic growth. People are going to be making more money and more people are going to be working more revenues coming in. And it doesn't look like. That's really what's happening. And so essentially what that means is that we had a much higher this year than we did last year. And the government is set to issue a whole lot more this year in order to get the cash that it needs to government operations because we just don't have the same revenue that you would expect to see in an economy that's doing this. Well, I mean, essentially revenue kinda were steady, but you expect them to be a lot higher. So anyway. Very long way of saying that we're continuing to spend a lot more. We didn't cut spending in response to tax cuts actually the government taxes. Great expanding. Also, just means more more and higher borrowing and markets get nervous about that. Because again, it could weigh on economic growth out private investment, meet with Kate Davidson, Wall Street Journal reporter about her story entitled US on a course to spend more on debt, then defense is it possible that things could reverse like that happened in the nineties, right? We went from a debt to a surplus. Right. Exactly. You know, we we talked to someone in our stories and said, look, you know. Sometimes deficits are not all bad for time. They're necessary to help get the economy really going and bring in more workers into workforce. And, you know, this this we talk about these things like they're never going to change like certainly policymakers at any time could take a big action to reverse things. And I think there are a lot of a lot of people deficit. Hawks think tanks and people were kind of outside government looking in saying, wow, we really need to confront this. Of course. Now after the terms we have a divided congress. So it's really unclear whether it's going to be able to come together and. Make the big really hard decisions to reverse that trend. Thanks, kate. That's Wall Street Journal reporter Kate Davidson, it is twenty minutes now in front of the hour on This Morning, America's first news. What's in store? This holiday at your local Staples giving and receiving and receiving some.

Kate Davidson Wall Street Journal reporter US federal government government Congressional Budget Office Staples twenty twenty America nine trillion dollars one trillion dollars twenty minutes
"kate davidson" Discussed on KTAR 92.3FM

KTAR 92.3FM

04:58 min | 2 years ago

"kate davidson" Discussed on KTAR 92.3FM

"Has risen from five point one trillion dollars to fifteen point nine trillion dollars. But financing all of that debt has not been a problem. Low inflation and strong global demand for safe US treasury bonds held the government's interest costs down. That's in the process of changing interest rates are rising. Plus, there's the sheer scale of debt being accumulated by the federal government that scenario eventually could crowd out other government spending priorities and rattled markets. It's a story by Wall Street Journal reporter, Kate Davidson, Kate explain taken on a lot of. That in the year since the financial crisis, which tends to happen. Sometimes you have to cover next to fight to spend more to try to stimulate the economy. And that's what we did here in the US, but interest rates have been very very low. Right. The fed had held interest rates near zero for a long time. So the interest payments on that debt, we're actually not that high. But that's obviously starting to change as a fat is starting to raise rates again. So the projections for some of these numbers, I really astonishing we expect the Congressional Budget Office is predominant within just a couple of years that it just the interest payments alone on our data are going to be as much as we spend on the entire Medicaid program by twenty twenty three it will be bigger than we spend on the entire defense budget. So really eye opening numbers. Yeah. Goodness. So many of us who might be alarmed by that think surely this is a wakeup call. But we've been down this path before though, right? I mean, what could happen? I guess in some of these may be worse case scenarios that are developing here. Yeah. Well, I think that the the economic research has showed us that, you know, high high deficits and high high high data courses is not good for the economy over the long run. And this is a big part of the debate on that winemakers were having and and policy wonks or having around the tax cuts last year. You might remember. There was a big debate about Kentucky Cup pay for themselves. And the reason why that was so important is that, you know, the the first of all Republicans are arguing that it was tax cuts are going to boost the economy, and I think that definitely this year, we have seen some of that consumers are spending a lot more that's driving this uptick and economic growth, but the concern from a lot of people was well, you know, we're going to cut taxes we need to cut spending as well because we're going to have lower revenues. They're people aren't gonna be paying as much as much in taxes seemed to sort of make sense. But the argument went, well, no it's going to generate so much growth. People are going to be making more money. More people are going to be. Working more revenues coming in. And it doesn't look like that's really what's happening. So essentially what that means is that we had a much higher dacas it this year than we did last year. And the government is set to issue a whole lot wrapped up this year in order to get the cash that it needs to fund government operations 'cause we just don't have the same revenue that you would expect to see it in an economy. That's doing this. Well, I mean, essentially revenue kinda were steady, but you expect them to be a lot higher. So anyway, that's a very long way of saying that we're continuing to spend a lot more. We didn't cut spending in response to the tax cuts actually the government passes. Great expanding. The also just means more more and higher borrowing and it markets get nervous about that. Because again, it could weigh on economic growth out private investment, speak with Kate Davidson, Wall Street Journal reporter about her story entitled US on a course to spend more on debt, then defense is it possible that things could. Reverse like that happened in the nineties. Right. We went from a debt to a surplus. Right. Exactly, you know. And we we talked to someone in our story who said, look, you know. Sometimes deficits are not all bad. Sometimes they're necessary to help get the economy really going and bring in more workers, enter workforce. And then we talk about these things like they're never going to change like certainly policymakers at any time could take a big action to reverse things. And and I think there are a lot of a lot of people deficit hawks tanks and people were kind of outside government looking in saying, wow, we really need to confront this. Of course. Now after the midterms we have a divided congress. So it's really unclear whether they're going to be able to come together and make the big really hard decisions to to reverse this trend, Kate that's Wall Street Journal reporter Kate Davidson, it is twenty minutes now in front of the hour on This Morning, America's first news. What's in store? This holiday at your local Staples giving and receiving an receiving some more this.

Kate Davidson Wall Street Journal government reporter US federal government Congressional Budget Office Kate fed Kentucky Cup Staples twenty twenty America nine trillion dollars one trillion dollars twenty minutes
"kate davidson" Discussed on KTOK

KTOK

03:25 min | 2 years ago

"kate davidson" Discussed on KTOK

"Has risen from five point one trillion dollars to fifteen point nine trillion dollars. But financing all of that debt has not been a problem. Low inflation and strong global demand for safe US treasury bonds held the government's interest costs down. That's in the process of changing interest rates are rising. Plus, there's the sheer scale of debt being accumulated by the federal government that scenario eventually could crowd out other government spending priorities and rattle markets. It's a story by Wall Street Journal reporter Kate Davidson, Kate explain taken on a lot of of that in the year since. The financial crisis, which tends to happen. Sometimes you have to governments decide to spend more to try to stimulate the economy. Not what we did here in the US. But interest rates have been very very low. Right. The fed had held interest rates near zero for a long time. So the interest payments on that debt, we're actually not that high obviously starting to change as a fetish starting to raise rates again so projections for some of these numbers are really astonishing we expect the Congressional Budget Office within just a couple of years that it just the interest payments on our debt are going to be as much as we spend on the entire Medicaid program by twenty twenty three it will be bigger than respond on the entire defense budget. So really eye opening numbers here goodness. So many of us who might be alarmed by that think surely this is a wakeup call. But we've kind of been down this path before though, right? I mean what what could happen. I guess in some of these maybe worse case scenarios that are developing here. Yeah. Well, I think that the the economic research has showed us that, you know, high high deficits and high high high data courses is not good for the economy over the long run. And this is a big part of the debate that lawmakers were having and and policy wonks or having around the tax cuts last year. You might remember. There was a big debate about tax cuts pay for themselves and reason why that was so important is that, you know, the the first of all Republicans are arguing that it was tax cuts are going to boost the economy, and I think that definitely this year we have seen some of that consumers are spending a lot more that's driving this uptick and economic growth, but the concern from a lot of people was well, we're going to cut taxes we need to cut spending as well because we're going to have lower revenues. You know, they're they're people aren't going to be paying as much as much in taxes to make sense. But the argument went well now it's going to generate so much economic growth. People are going to be making more money. More people are going to be. Working more revenues coming in. And it doesn't look like that's really what's happening. And so essentially what that means is that we had a much higher deficit this year than we did last year. And the government is set to issue a whole lot more get this year in order to get the cash that it needs to the government operations because we just don't have the same revenues that you would expect to see it in Konami that's doing this. Well, I mean, essentially revenue kinda were steady, but you expect them to be a lot higher. So anyway, that's a very long way of saying that we're continuing to spend a lot more. We didn't cut spending in response to tax cuts actually the government passes, great big spending deal. So that's just me and more more and higher borrowing and it markets get nervous about that..

US federal government Kate Davidson Congressional Budget Office Wall Street Journal Konami fed reporter twenty twenty nine trillion dollars one trillion dollars
"kate davidson" Discussed on KOA 850 AM

KOA 850 AM

03:15 min | 2 years ago

"kate davidson" Discussed on KOA 850 AM

"Has risen from five point one trillion dollars to fifteen point nine trillion dollars. But financing all of that debt has not been a problem. Low inflation and strong global demand for safe US treasury bonds held the government's interest costs down. That's in the process of changing interest rates are rising. Plus, there's the sheer scale of debt being accumulated by the federal government that scenario eventually could crowd out other government spending priorities and rattle markets. It's a story by Wall Street Journal reporter Kate Davidson, Kate explain taken on a lot of of that in the year since. The financial crisis, which tends to happen. Sometimes you have two governments decide to spend more to try to stimulate the economy. And that's what we did here in the US. But interest rates have been very very low. Right. If that had held interest rates near zero for a long time, so the interest payments on that we're actually not that high. That's obviously starting to change as a fetish starting to raise rates again. So projections for some of these numbers are really astonishing we expect the Congressional Budget Office within just a couple of years that it just the interest payments alone on our debt are going to be as much as we spend on the entire Medicaid program by twenty twenty three will be bigger than we spend on the entire defense budget. So really eye opening numbers. Share goodness. So many of us who might be alarmed by that thinks surely this is a wakeup call. But we've been down this path before though, right? I mean what what could happen. I guess in some of these may be worse case scenarios that are developing here. Yeah. Well, I think that the the economic research has showed us that. Hi, high deficits and high high high data courses is not good for the economy over the long run. And this is a big part of the debate that lawmakers were having and and policy wonks or having around the tax cuts last year. You might remember. There was a big debate about tax cuts pay for themselves and reason why that was so important is that you know, that the first Republican to arguing that tax cuts are going to boost the economy, and I think that definitely this year we have seen some of that consumers are spending a lot more that's driving uptick an economic growth, but the concern from a lot of people was well, you know, we're going to cut taxes we need to cut spending as well because we're going to have lower revenues. You know, they're they're people aren't going to be paying as much as much in taxes. It makes sense. But the argument went, well, no it's going to generate so much economic growth. People are going to be making more money. More people are going to be working were revenues coming in. And it doesn't look like that's really what's happened. Winning. And so essentially what that means is that we had a much higher deficit this year than we did last year. And the government is set to issue a whole lot more get this year in order to get the cash that it needs coq government operations because we just don't have the same revenue that you would expect to see it in an economy. That's doing this. Well, I mean, essentially revenues kinda were steady, but you expect them to be a lot higher. So anyway. Way of saying that we're continuing to spend a lot more. We.

US federal government Congressional Budget Office Kate Davidson Wall Street Journal reporter twenty twenty nine trillion dollars one trillion dollars
"kate davidson" Discussed on WSJ Your Money Briefing

WSJ Your Money Briefing

01:55 min | 2 years ago

"kate davidson" Discussed on WSJ Your Money Briefing

"And of course, interest rates have gone up making repaying the debt more expensive. President Trump is weighed in saying the fed should not raise interest rates because it makes it harder to pay off the debt. Right. I mean, they seem like his initial criticism is very much about he doesn't want them to slow down economic growth. But kind of the next layer if you're listening closely twenty says is that he's frustrated. Yeah. This is he seems to be saying this is money that are is the money that could be going to other things just makes it more expensive to pay down the debt, and that's bad for the government. Of course. I think the fed would probably argue if I didn't really respond his criticism at all. But I think the argument from the other side would be that. The Fed's job is to is to make sure that the economy is operating on an even keel that inflation is not going to quickly that jobs are plentiful. And so they can't really be worried about whether their actions might increase interest costs that's not their mandate. And that's not really what they're focused, and they wanna make sure that prices are kept in check. And that the economy stays healthy and continues to expand. And I just from a purely political standpoint some people would. Argue that just his wanting to cut taxes would increase the debt even more for sure on part of something in the president said a few weeks ago is that right? We have these he's rising interest rates, and we could be paying down our debt. But in fact, it's a little bit like saying, you know, if the rates on my credit card or zero I could be paying it off. But then at the same time, you know, turning around and charging more things on it. It's kind of a little bit of what's not a perfect analogy. But you know, the government is continuing to issue a lot of debt, and because of these deficits that are related to higher spending and tax cuts arguably over the past year, or so the president is saying we could be paying down our debt, but really we're not anywhere close to that Wall Street Journal reporter Kate Davidson, thanks a lot Kate. Thank you, Charlie. And that's your money briefing. I'm Charlie Turner in New York for the Wall Street Journal..

President Trump fed Wall Street Journal president Charlie Turner Kate Davidson New York reporter
"kate davidson" Discussed on WSJ Your Money Briefing

WSJ Your Money Briefing

03:54 min | 2 years ago

"kate davidson" Discussed on WSJ Your Money Briefing

"The most expensive item on the government spending budget before too long? It could be the debt held by the nation's tax payers, Uncle Sam is projected to spend more on debt than on national defense, Medicaid, or non-defense discretionary programs financing are growing debt hasn't really been a problem over the past few years. But it looks like that is changing joining us to explain this. As Wall Street Journal reporter, Kate Davidson, Kate I'm under the impression that has largest the debt has grown. The biggest problem is interest on the debt. Is that right? Yes. We'll interest on the debt is the fastest growing part of the federal budget thinking about it. More broadly. Some of the bigger drivers of the debt do include programs like, Medicaid and social security in part because you know, the population as is growing older, you know, the baby boomers are retiring they're drawing more from those programs and programs are getting they're getting more expensive. But what we're seeing right now the costs that are going up the fastest air. These interest costs by how much have our interest cost grown well over the past decade, or so the costs have been pretty manageable, and that's pr- primarily because the Federal Reserve has kept interest rates near zero after the recession, you know, few years ago, they started very slowly raising them and their projected to continue raising them through next year. We had a few rate increases in twenty eighteen we expect one more perhaps in December and then three or four next year. And as that happened, of course, interest rates are going up so in the past year, alone interest payments, rose twenty percent another factor too. It's just that the overall size of the debt is going up. So it's the size of the debt and interest rates are contributing to higher amount. And as you mentioned Charlie just within a few years that's going to mean that the interest payments are amounting to more than we spend on the entire Medicaid program. For example, that's just by twenty twenty by twenty twenty three that could be bigger than the whole. Fence budget. So it's really adding up. So this is obviously going to crowd out government spending on other priorities. I mean, that's how the thinking goes. And that's I think what we've seen what we've seen before. They are. Of course, some people who argue that deficits and rising debt can be managed their opportunities for congress to come up with something agreement to try to tackle these deficits. But if they if they don't right at going forward that could crowd out private investment, and generally just be bad for the economy in a way on economic growth. And that's why the conversations about about deficit where central part of the debate over the tax cuts, and whether they would generate enough ecconomic growth to pay for themselves because if they don't that is just going to add to the debt, and and in the years to come or you write that within the next year congress, which has now become divided since the Democrats took the house. They're going to have some decisions to make on whether to expend a budget agreement. Right. So they mentioned the tax. Cut. And that of course, is affecting we've seen it affecting revenues, and that's having some deficit effects in could could weigh on the deficit. The other piece, of course, is is spending. So something else congress did last year that's kind of under the radar for a lot of people as they pass this very large agreement to boost federal spending three hundred billion dollars or a couple of years and that agreement will expire in September. And they'll have to come to have to not just pass new spending Bill to avoid a government shutdown next year, but potentially come up with a, you know, another longer term or medium term agreement or a couple or few years, maybe even longer and right are they the big question is are they going to just agree to spend a lot more money. Or are they going to agree that they need to pay for that they need to find somewhere else if they want to increase spending on other uncertain program, they need to offset elsewhere or they need to raise taxes and not all of those things seem very politically difficult, especially as you said in a divided congress..

congress Medicaid Wall Street Journal Federal Reserve Kate Davidson reporter Kate I Bill twenty twenty Charlie three hundred billion dollars twenty percent
"kate davidson" Discussed on WSJ What's News

WSJ What's News

02:15 min | 2 years ago

"kate davidson" Discussed on WSJ What's News

"The Federal Reserve issued the minutes from its last policy meeting held September twenty fifth and twenty. Sixth, the minute showed fed policymakers voted unanimously for an interest rate hike and signalled. They see a strong economy justifying continued gradual rate. Hikes fed officials also said they will watch for evidence. There moves are keeping economic growth on an even keel. A backdrop for this has been President. Trump's recent comments about the fed. For example, calling the central Bank quote, my biggest threat. The president has directed criticism toward the Federal Reserve in its chairman, Jerome Powell over the past week or so criticizing the fed over its raising short-term interest rates joining us from Washington to talk about the fed minutes. And the feds biggest critic is Wall Street Journal reporter, Kate Davidson. So Kate, this means we can expect a fourth interest rate hike this year at the next meeting in December. I think that that expectation is reasonable, Charlie, and that's certainly what markets expect when the fed Mets at the end of September, they also released economic projections. And so it wasn't a surprise to us that they reiterated this message because the projection showed that most officials were projecting another rate increase in December and and they've also penciled in about three rate increases next year. So the minutes just affirm that they remain on that path isn't the real question. How long the fed feels. It needs to keep raising rates to what they call this neutral level one. You go into that? Yeah, sure. So the neutral level of interest, it's a little bit tricky, but you mentioned earlier about keeping things on an even keel. So basically the neutral rate is the rate at which rates are neither spurring economic growth nor slowing it down. And so most officials have indicated that that's the range that they want to get to where the economy is just just a a healthy economy. But the question about what to do after that as a bit up in the are some officials think that the fed should continue raising rates past that point possibly to slow the economy down to avoid unflinching going up too much part of the problem. Oh, is they don't exactly know where this neutral rate is. It's very uncertain. There have been some estimates of it, but nobody really knows. And that's something that fed chairman. Jerome Powell has tried to sort of play down a little bit at this. This idea that they can know with any certainty. And he's he's sort of just said, they're going to continue looking at.

Federal Reserve Jerome Powell Kate Davidson President chairman Wall Street Journal Trump reporter Charlie Mets Washington twenty fifth
"kate davidson" Discussed on 1410 WDOV

1410 WDOV

02:03 min | 3 years ago

"kate davidson" Discussed on 1410 WDOV

"No single nation including the us can determine its fate but if tax law gives little time for government agencies businesses and individuals to adjust to its wide ranging changes many of which take effect in a matter of days the law sets most of that is ably angry and left the chamber after speaking the nonbinding un resolution reflected the overwhelming consensus in the international community that jerusalem you'll signed legislation here's wall street journal reporter kate davidson kate what you look at we took a look at essentially what are um company is preparing for what are accountants repair and foreign a best specifically also we talked to policymakers in washington i mean this is a this is a massive bellied are huge changes we haven't seen changes like this to the tax code since um you know early mid '80s and to the irs though which will be responsible for implementing a lot of that they're used to smaller kind of tax change changes you know we've seen bills signed legislation wall street journal reporter to davidson to which looked at we took a look at essentially what our company is preparing for what are accountants repair foreign a best specifically also we talked to policymakers in washington i mean this is a this is a massive bellies are huge changes we haven't seen changes like this to the tax code since um you know early mid '80s and so the irs though which will be responsible implementing a lot of that they're used to smaller kind of tax chain changes you know we've seen belly down to the the guy who does your taxes exactly i mean and linked up with a number of dignitary as recently as just a couple of weeks ago i didn't say we don't really know and i mean that makes sense traffic for the next attack fear and essentially update their table the update their formed to adapt to that but this is such a huge bill coming all at one and so late in the year i mean that built the brad contoured and parameters trying to figure out the detailed so one group in particular that we wrote about our story on the very large on payroll industry trade group i mean they were warning hey apparel companies and employers need to know at the very beginning of the.

us tax law kate davidson washington irs reporter trade group wall street journal
"kate davidson" Discussed on WSJ What's News

WSJ What's News

01:53 min | 3 years ago

"kate davidson" Discussed on WSJ What's News

"Thanks for listening everyone the massive tax reform legislation has quite a few provisions that take place starting with the new year that leaves very little time for government agencies businesses and individuals to adapt to the changes also it's still not clear when president donald trump will sign the new bill the wall street journal says he may wait until after the new year to avoid mandatory spending cuts associated with the tax bill and budget rules joining us from washington is wall street journal reporter kate davidson kate is there any game plan by either the internal revenue service are treasury department on how to adjust to changes in this bill or are both agencies sort of scrambling to implement the law um well i think it's sad probably somewhere in between added i think they're probably certainly scrambling just because they don't have much time that i do think that they have been trying to come up with a game plan we've heard that treasury officials had been reaching out to different industry groups and businesses in particular trying to ask them for feedback you know what are essentially they wanna know what are the provisions that you're going to need guidance on right away so the tax bill takes effect janu many of the provisions most of them take effect january 1st so um the president if he signs the bill over the next few days sometime before the end of the year that could give them literally a matter of days to get things in order now of course we've known some of the broad outlines of the of the bill for a couple of weeks even though there were lastminute tweaks in some changes that the house in the senate made a generally speaking i think that the irs has been able to start going ahead treasury has said that they've in one treasury official told us that the irs has started updating the withholding tables which are an important part of course for determining uniform businesses to determine how much money to take out of workers paychex um.

president wall street journal washington the house senate irs treasury official donald trump reporter kate davidson
"kate davidson" Discussed on WSJ What's News

WSJ What's News

01:35 min | 4 years ago

"kate davidson" Discussed on WSJ What's News

"Consumer price index inflation data is i'm going to be coming out on wednesday wednesday's a big day um so obviously inflation data really important to the fed it's been a little bit a little bit mixed um the inflation data has been somewhat weak but uh it hasn't worried fed officials too much and in any case any time you see data coming out in the morning of a fed meeting it's not going to affect the direction of their decision or anything but it's still you know it's a still is interesting to see what happens they are we'll be looking at at that as well um and of course the consumer price index it's probably the inflation gauge that were almost familiar with but i'm the one that the fed actually prefers to look at is the personal consumption expenditures index so um and that's probably more information they our listeners need but it's good to it's good to know your inflation gauges we're talking about what to watch this week with the economy with kate davidson and you're listening to what's news from the wall street journal this podcasts sponsored by ijaz b c when it's time to take your business international were take your international presence to a whole new level has b c has the network to connect you to the world search h s b c international to learn more thanks for listening everyone kate end of the week we get housing starts anything of interest in there there's been a lot of talk lately about housing supply and um essentially supplies just really tight and that sort of lead to price increases um housing starts of course as construction a new home so always looking to see whether and how that is picking up.

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