The US economy has exceeded the Federal Reserve's estimate of its growth potential in recent years, with growth averaging 3% under President Joe Biden, but concerns about rising public debt and inflation, as well as the Fed's efforts to control them, may lead to slower growth in the future and potentially a recession. However, there are hints of improving productivity that could support continued economic growth.
China's budget deficit has shrunk by more than a third this year, indicating cautious fiscal policy despite economic slowdown and a worsening housing market.
The US Inflation Reduction Act (IRA) has led to increased investments in critical mineral projects and hydrogen producers, but its long-term impact depends on mine permitting rule changes and tax credit guidance; the US Treasury plans to issue $1.859 trillion of debt in the second half of 2023, weighing on bond prices; and new guidance from the Federal Deposit Insurance Corp. has resulted in revisions to uninsured deposit totals for several banks.
The US government's debt has reached a record high of almost $33 trillion, causing concerns about its impact on the nation's finances and the risk of a debt crisis, according to experts like Larry McDonald, Ray Dalio, and Nouriel Roubini.
President Biden's new spending initiatives, including the "Inflation Reduction Act," are likely contributing to an increase in inflation, counteracting his claims that inflation is under control and negatively impacting the financial situation of average Americans.
The U.S. federal deficit is projected to double this year to around $2 trillion, largely due to higher interest rates, lower tax revenue, and increased Social Security and Medicare costs.
The U.S. debt is expected to reach $2 trillion this year, doubling from the previous year, due to a decline in global economic growth.
Despite positive economic growth and low unemployment rates, several major indicators suggest that the American economy under President Joe Biden is heading towards a recession, with high government deficit numbers indicating possible overspending to prevent a recession before the 2024 election.
The US is facing a potential financial crisis as the national debt reaches $33 trillion and the federal deficit is expected to double, posing a threat to President Biden's government and potential consequences for American citizens.
President Joe Biden warns that Republican-backed spending cuts could negatively impact the U.S. economy and voters as the deadline for a possible government shutdown approaches.
The French government plans to save 16 billion euros from its 2024 budget, with 10 billion euros coming from removing caps on power and gas prices, in addition to other spending reductions and lower state aid to companies, while also trimming the country's growth outlook for next year.
The US federal debt has reached $32.94 trillion, prompting concerns from JPMorgan Chase CEO Jamie Dimon about the impact on households, while Congress faces pressure to pass a new budget before potential government shutdown at the end of September.
The US's $32 trillion debt may not be as dire as it seems, as experts point out misconceptions about the national deficit and its impact on the economy. However, future debt problems could arise due to current spending rates.
The Congressional Budget Office (CBO) is revising its projections for this year's US budget deficit, expecting it to be significantly higher than previous estimates, reaching $1.7 trillion in 2023, a 13% increase from four months ago.
The US national debt has reached a record high of $33 trillion, prompting the need for leaders to decide whether to raise the debt ceiling, as inflation continues to rise and there is a looming government shutdown.
US Treasury Secretary Janet Yellen believes that despite the national debt nearing $33 trillion, the federal government's debt burden remains under control due to the net interest as a share of GDP remaining at a reasonable level. However, critics warn of the potential risks of a growing debt and credit bubble. Additionally, Yellen hopes for a quick resolution to the United Auto Workers' strike, stating that the economy remains strong overall.
Wall Street feels defensive as the US national debt surpasses $33 trillion and a government shutdown looms, potentially worsening the economy's current issues and increasing the likelihood of a recession, with the shutdown estimated to cost the US economy $6 billion per week and shave GDP growth by 0.1 percentage points in the fourth quarter of 2023.
