Tag: United States Economy

Wall Street Is Buzzing About Repo Rates. Here’s Why.

Investors take for granted that the Federal Reserve controls interest rates. Rarely do they have to think about how. But a surprisingly lively couple of days in short-term money markets has meant that the “how” became nearly as important as the “why.” The stress started on Monday in the market for repurchase agreements, or repos. […]

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A Clash Over Barack Obama’s Legacy? Democratic Voters Don’t Want to Hear It

In some of the tensest moments of the 2020 debates, a viewer might have concluded that Democrats were poised for a large-scale clash over the legacy of President Barack Obama. There have been heated arguments about whether to stick with Mr. Obama’s architecture for health care policy or to pursue a single-payer system, and flashes […]

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Barack Obama’s Biggest Mistake

In 2009, Barack Obama was the most powerful newly elected American president in a generation. Democrats controlled the House and, for about five months in the second half of the year, they enjoyed a filibuster-proof, 60-vote majority in the Senate. For the first six months of his presidency, Obama had an approval rating in the […]

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Fed Cuts Interest Rates by Another Quarter Point

WASHINGTON — The Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday, its second move since late July, as it tries to insulate the economy against rising political risks and the fallout from a global slowdown. A growing number of officials expect one more reduction this year, based on economic […]

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The Fed Is Poised to Cut Rates Again. Here’s What to Watch.

WASHINGTON — Federal Reserve officials are expected to cut interest rates for a second time on Wednesday, a move that could prove divisive among Fed officials and aggravate President Trump’s anger toward the central bank. The Fed’s rate decision, which will be announced at 2 p.m. in Washington, will be accompanied by a fresh set […]

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How an Oil Price Surge Could Hurt the U.S. Economy

For months, American consumers have kept the economy humming. While businesses pulled back, shoppers continued to spend. But a prolonged surge in gasoline prices after the attacks on oil production facilities in Saudi Arabia could undermine that phenomenon and increase the risk of a recession. “It’s clearly not a positive, and it adds a negative […]

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An Oil Price Surge Could Hurt Consumer Spending, and the Economy

For months, American consumers have kept the economy humming. While businesses pulled back, shoppers continued to spend. But a prolonged surge in gasoline prices after the attacks on oil production facilities in Saudi Arabia could undermine that phenomenon and increase the risk of a recession. “It’s clearly not a positive, and it adds a negative […]

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Trump Urges ‘Big’ Rate Cut as Fed Faces Challenges

WASHINGTON — The Federal Reserve is poised to cut interest rates for the second time this year on Wednesday as policymakers try to get ahead of economic risks emanating from a global slowdown, President Trump’s trade war and uncertainty about the road ahead. The central bank’s leadership is under immense political pressure from Mr. Trump, […]

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The Fed Faces a Tough End to 2019 as Worries Cloud the Horizon

WASHINGTON — The Federal Reserve is poised to cut interest rates for a second time on Wednesday as policymakers try to get ahead of economic risks emanating from a global slowdown, President Trump’s trade war and uncertainty about the road ahead. Investors largely expect a rate cut, but the decision could be contentious as Fed […]

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Fearing ‘Spy Trains,’ Congress May Ban a Chinese Maker of Subway Cars

CHICAGO — America’s next fight with China is unfolding at a glistening new factory in Chicago, which stands empty except for the shells of two subway cars and space for future business that is unlikely to come. A Chinese state-owned company called CRRC Corporation, the world’s largest train maker, completed the $100 million facility this […]

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Recession or Slowdown? Why You Should Care About the Difference

The United States is on recession watch as market signals flash red. Manufacturing is straining under President Trump’s trade war, business investment is slowing and consumer confidence is showing cracks. But many economists expect that growth will weaken slightly over the next couple of years — but not contract — and that distinction is crucial. […]

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Trump Hits the Panic Button

Donald Trump marked the anniversary of 9/11 by repeating several lies about his own actions on that day. But that wasn’t his only concern. He also spent part of the day writing a series of tweets excoriating Federal Reserve officials as “Boneheads” and demanding that they immediately put into effect emergency measures to stimulate the […]

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Treasury Considers 50-Year Bonds as Deficit Tops $1 Trillion

WASHINGTON — The Trump administration may begin issuing 50-year “ultralong” bonds next year as the government seeks new ways to finance ballooning deficits and tries to take advantage of low interest rates. Treasury Secretary Steven Mnuchin said on Thursday that he had been studying whether there was sufficient market demand for a 50-year bond, which […]

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Trade Talks Looming, U.S. and China Lower Their Guard, a Little

WASHINGTON — President Trump said on Thursday that China would resume purchases of American farm goods and Beijing confirmed that Chinese companies were making inquiries about buying agricultural products, the latest sign that both sides are trying to ease tensions that have pushed the bilateral relationship to its rockiest point in decades. The president’s announcement, […]

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What People Say About the Economy Can Set Off a Recession

When will the next recession arrive? Economists are evaluating such factors as President Trump’s endlessly shifting tariff policy, the monetary policy of the Federal Reserve and other central banks, and such “leading indicators” as the yields in the bond market. It is good to look at these things. They provide insights about the state of […]

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Trump Calls for Fed’s ‘Boneheads’ to Slash Interest Rates Below Zero

WASHINGTON — President Trump urged the Federal Reserve to cut interest rates below zero, suggesting a last-ditch monetary policy tactic tested abroad but never in America. His comments came just one day before European policymakers are widely expected to cut a key rate further into negative territory. In a series of tweets, Mr. Trump said […]

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The Forces That Are Killing the American Dream

TRANSACTION MAN The Rise of the Deal and the Decline of the American DreamBy Nicholas Lemann When the writer William H. Whyte coined the term “Organization Man” in his 1956 book of the same name, he did not mean it as a compliment. The book described the stultifying conformity of life in Park Forest, Ill., […]

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Share of Americans With Health Insurance Declined in 2018

The share of Americans with health insurance fell last year, despite a strong economy that lifted families out of poverty. About 27.5 million people, or 8.5 percent of the population, lacked health insurance for all of 2018, up from 7.9 percent the year before, the Census Bureau reported Tuesday. It was the first increase since […]

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Democrats Need to Get More Ruthless

How important do Democrats think it is to beat President Trump in 2020? Obviously, most Democrats would say it’s vitally important. Four more years of the Trump presidency could allow him to replace Ruth Bader Ginsburg on the Supreme Court. It would worsen the climate crisis. It could cement his paranoid racism and scorn for […]

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Fed Chair Powell Says Central Bank Will Keep Economic Expansion Going

ZURICH — The Federal Reserve chair, Jerome H. Powell, said on Friday that the Fed remains committed to keeping the United States economic expansion going, remarks that signal the Fed is likely to cut interest rates again at its coming meeting. “The Fed has, through the course of the year, seen fit to lower the […]

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