Tag: United States Economy

Trump Isn’t the First President to Make War on the Federal Reserve

Taking to Twitter late last month, President Trump made clear that when it comes to the economy, the real enemy is not in Beijing, but just down the street from the White House, in the headquarters of the Federal Reserve. The Fed’s chairman, Jerome Powell, had recently led his board in lowering interest rates by […]

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Trump’s Embrace of Sanctions Irks Allies and Prompts Efforts to Evade Measures

WASHINGTON — President Trump’s increasing reliance on economic sanctions to solve foreign policy problems is fueling concern that the United States is abusing its financial power and prompting some governments to seek ways to evade American measures. In recent months, the United States has increased pressure on Iran and Venezuela, dangled the removal of North […]

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Warren Wealth Tax Could Slow Economy, Early Analysis Finds

WASHINGTON — Senator Elizabeth Warren’s proposed wealth tax would slow the United States economy, reducing growth by nearly 0.2 percentage points a year over the course of a decade, an outside analysis of the plan estimates. The preliminary projection from the Penn Wharton Budget Model, which will be unveiled on Thursday in Philadelphia, is the […]

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Our Schools Can’t Solve the Problems of Our Rigid Workweek

The average American parent has a strange schedule. The 9-to-5 work schedule hails from the early 20th century, when labor reformers sought to institute fairer labor conditions. The school schedule for children dates to the 1960s, when rural and urban school districts settled into a rhythm of six and a half-hour school days, five days […]

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Fed Chair Paints Rosy Economic Picture, but Says Risks Remain

WASHINGTON — Jerome H. Powell, the Federal Reserve chair, will paint an optimistic picture of the United States economy in testimony before Congress on Wednesday, though he warns that threats to the outlook persist. “In particular, sluggish growth abroad and trade developments have weighed on the economy and pose ongoing risks,” Mr. Powell will say, […]

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Trump Renews Tariff Threat Against China and Touts U.S. Economic ‘Boom’

WASHINGTON — President Trump on Tuesday said the United States was “close” to an interim deal with China and that an agreement “could happen soon,” even as he renewed his threat of additional tariffs. Mr. Trump’s remarks at the Economic Club of New York were likely to stoke still more uncertainty about how quickly the […]

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Bursting the Billionaire Bubble

Immense wealth isn’t good for your reality sense. Billionaires aren’t necessarily bad people, and most of them probably aren’t. However, some are, and my unscientific sense is that billionaires are more likely than the rest of us to exhibit bad judgment warped by runaway egos, especially in the political sphere. It’s not hard to see […]

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Big Business Is Overcharging You

When Thomas Philippon moved to Boston from his native France 20 years ago, he was a graduate student on a budget, and he was happy to discover how cheap American telephone use was. In those days of dial-up internet connections, going online involved long local phone calls that could cost more than $10 apiece in […]

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Warren Would Take Billionaires Down a Few Billion Pegs

“Yes, billionaires will have to pay a little more,” Senator Elizabeth Warren said of the revised tax package she introduced recently, “six cents on each dollar.” This modest-sounding proposal, though, would have a far-reaching impact on the wealthiest Americans when combined with her other tax plans — shrinking colossal fortunes over time and making it […]

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A Recession Warning Reverses, but the Damage May Be Done

The message from Wall Street is clear: The American economy is not in the kind of trouble that investors feared earlier this year. Stocks are at all-time highs and climbing. Yields on long-term government bonds, which reflect expectations for growth and inflation, are also rising. Corporate bond spreads show that investors are more confident in […]

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Recession Fears Are Receding. That Doesn’t Mean They Were Unfounded.

ImageA trader at the New York Stock Exchange in August, during a period when the yield curve was inverted and stocks took a dive. Credit…Richard Drew/Associated Press Imagine you are in a car speeding down the road. An obstruction comes into view, and the passengers in the car yell, “Watch out!” The driver swerves and […]

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Trump Rules Out Complete Rollback of China Tariffs as Talks Continue

WASHINGTON — President Trump on Friday ruled out rolling back all the tariffs he has imposed on China and indicated that he has not yet decided which levies, if any, he might eliminate as part of an initial trade agreement. The comments came amid conflicting signals this week from the White House and China over […]

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Welcome, Mike Bloomberg

This article is part of David Leonhardt’s newsletter. You can sign up here to receive it each weekday. Good for him. I’ll be surprised if Michael Bloomberg wins the Democratic nomination. We are living in a political era characterized by economic dissatisfaction and populism, and a 77-year-old Wall Street billionaire doesn’t look like an obvious […]

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How Lying and Mistrust Could Hurt the American Economy

News organizations have devoted considerable resources to tallying and correcting thousands of misleading statements — and outright lies — made by President Trump and his supporters. At the same time, the president has frequently and falsely accused mainstream news organizations of disseminating “fake news.” The threat to a free press and the political dangers posed […]

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Centrists, Progressives and Europhobia

Will the Democratic presidential nomination go to a centrist or a progressive? Which choice would give the party the best chance in next year’s election? Honestly, I have no idea. One thing I can say, however, is that neither centrism nor progressivism is what it used to be. There was a time when arguments between […]

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Why Walmart and Other Companies Are Sticking With the Paris Climate Deal

The Trump administration’s announcement this week that it would follow through with its plan to officially withdraw the United States from the Paris Agreement is deeply unfortunate. Leaving the accord will hamper America’s economic competitiveness and put Americans and people around the world at greater risk for climate-related disasters. That’s why Walmart is one of […]

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Companies Cut Back, but Consumers Party On, Driving the Economy

“YOLO,” Danielle Walker said, explaining why she had just spent a chunk of her biweekly $900 paycheck on an adorable outfit — quilted navy vest, cranberry plaid riding pants and knit sweater — from the “equestrian shop” at Janie and Jack, the children’s clothing store in the Mall of America where she works. “You only […]

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Warren Health Plan Tightens Democrats’ Embrace of Tax Increases

WASHINGTON — Three years after President Trump rode a wave of populist anger into office, some of his top Democratic challengers are calling for a fundamental reordering of American capitalism, arguing that voters will embrace bold plans to reverse decades of rising inequality by raising taxes on corporations and the rich. The $20.5 trillion proposal […]

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Stocks Hit Record After Jobs Report

Stocks rose Friday after a strong jobs report reassured investors about the health of the United States economy. Employers added 128,000 jobs in October, more than economists had expected, the Labor Department said, and revisions to prior months’ data tacked on another 95,000 jobs. October’s figure would have been stronger had it not been for […]

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Jobs Are Plentiful. Big Pay Raises Aren’t.

ImageAt a Wendy’s in Miami last month.Credit…Joe Raedle/Getty Images There are three basic stories that employment data have been telling us in the last few months. The October numbers, released Friday, confirm two of them and undermine the third. The first story: Jobs are plentiful and unemployment low. Most everyone who wants a job can […]

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