Senate leaders unveiled a new $1.7 trillion year-long federal government funding bill early Tuesday morning. The legislation includes $772.5 billion for non-defense discretionary programs and $858 billion in defense funding (a 9.7% increase), according to the bill’s summary. The bill also gave military members a 4.6% pay raise. It also includes several major Medicaid provisions. The sweeping 4,000+ page… Continue Reading
Category Archives: Economy & Markets
Americans’ Net Worth Plunges In 2022
Before I get into today’s discussion, let me briefly comment on the Fed Open Market Committee’s (FOMC) latest decision regarding short-term interest rates. As was widely expected, the FOMC voted yesterday to raise its Fed Funds rate by 0.5% to a range of 4.25-4.50%. This increase followed four consecutive rate increases of 0.75% earlier this… Continue Reading
3Q GDP Rises Again, Fed’s Jerome Powell Remains Hawkish, But…
The Commerce Department reported yesterday that 3Q Gross Domestic Product rose at an annual rate of 2.9% following its initial estimate of 2.6% last month, as you can see in the chart below. The latest 2.9% print was better than expected. Most forecasters are hesitant to issue predictions for the 4Q of this year due… Continue Reading
More Americans Starting New Businesses, Despite Slow Economy
Despite the slowing economy, applications to form new businesses in the US grew by 1.2% in October, compared to the previous month. That’s not unusual because new business start-ups have soared since 2020 when the Covid pandemic raised its ugly head, as you can see in the chart below. Part of what drives new business formation… Continue Reading
Mid-Term Election Thoughts & Why Inflation Is So High
Today’s discussion will focus on why inflation is at a 40-year high. There’s a very good reason, but I’m not sure many Americans understand it. But before we get into that discussion, I have some observations on the results of the midterm elections, although some of the final vote counts are not yet in. While… Continue Reading