Will Federal Spending Be Brought Under Control?
With the federal debt ceiling fight looming in Congress, now is a good time to look again at how much the federal government owes, and whether the new Republican House majority will be able to keep spending under control. Figure 1 shows how federal debt held by the public as a percentage of the economy […]
The Federal Reserve’s $2.5trn question
Can a central bank make $2.5trn of cash vanish without anyone much noticing? That is the improbable, even audacious, mission the Federal Reserve has begun, trying to shrink its vast balance-sheet while minimising disturbances to the economy. The process—known as “quantitative tightening” (qt)—got under way in mid-2022. The Fed has already shed nearly $500bn in […]
Federal Reserve Chairman Jerome Powell tests positive for Covid
Federal Reserve Chairman Jerome Powell has tested positive for Covid-19, the central bank announced Wednesday morning. Powell, 69, is “experiencing mild symptoms,” according to the announcement. “Chair Powell is up to date with COVID-19 vaccines and boosters. Following Centers for Disease Control and Prevention guidance, he is working remotely while isolating at home,” a news […]