Finance, Currency, Debt, National Budgets & Interest Rates Archives

Gold and Silver Hit Record Highs As Trump’s DOJ Squeezes the Fed

12Jan

By Patti MohrNo Comments

Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

Gold and Silver Hit Record Highs As Trump’s DOJ Squeezes the Fed

U.S. Central Bank Independence Questioned January 12, 2026—The price of precious metals soared to new heights as the U.S. central bank's independence came under greater political pressure. Gold and silver reached record highs, at $4,600 a troy and $86 an ounce, respectively. It comes as global investors grow wary of the increased political pressure by President Donald Trump on the Federal Reserve. Investors fear the central bank is losing autonomy to curb long-term inflation in the United States. Intensifying geopolitical tensions are also weighing on the markets. Year on year, gold prices increased by 70 percent, up from $2,715 a troy. Silver, meanwhile, swelled by 183 percent, from $30 an ounce in January 2025 to $86 an ounce today. Investors are placing bets on whether or not t...

1Jul

By Patti MohrNo Comments

Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

Senate Clears Trump’s Mega Budget Bill

Tax Cut Extension Would Increase the U.S. Debt by $4.2 Trillion July 1, 2025--The Senate approved President Trump's signature budget and policy bill today, as Vice President JD Vance broke a tie vote, clearing the bill for the House. The legislation, formerly known as the "Big, Beautiful Bill," would reduce taxes on the wealthy, cut the SNAP food aid program, and reduce the Medicaid healthcare for low-income people by $1 trillion. Furthermore, H.R. 1 would implement significant budgetary and policy changes. The new text totals 887 pages.The bill masks an estimated $3.3 to $3.8 trillion revenue loss to the federal budget. The bill, H.R. 1, would raise the current U.S. national debt of $37 trillion to historic new highs. The House passed a different version of the bill in May, rockin...

22May

By Patti MohrNo Comments

Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

House Passes Massive Budget Bill

Big, Beautiful Bill Would Add $3.8 Trillion to the $36.9 Trillion U.S. Debt The House passed a significant budget bill in the wee hours of the morning that would add $3.8 trillion to the U.S. debt of $36.89 trillion. The chamber voted 217-212 on final passage at 2:30 a.m. "The House has passed generational, truly nation-shaping legislation," House Speaker Mike Johnson said. Trump’s party, the Republicans, control both chambers of Congress. They have a 220-212 majority in the lower chamber. Next, the Senate will take up the measure. It is divided on a 53-47 margin. 'Big and Beautiful' Basics Called “The Big, Beautiful Bill,” H.R. 1 is 1,100 pages long. A summary of it is available through Congress.gov here. For details to changes to federal spending, see the CBO. On ...

United States: The Big, Beautiful Bond Drop

21May

By Patti MohrNo Comments

Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief

United States: The Big, Beautiful Bond Drop

Trump Budget Plan Prompts Rating Drop And Loss of Confidence in Treasuries May 21, 2025—The bond markets for long-term U.S. Treasuries spoke clearly on Wednesday, and it wasn’t pretty. The 30-year Treasury yield rose to 5.096 percent as bond dealers sold off U.S. long-term debt holdings. The bond markets underpin a country's economic stability. Volatility in government bonds can impact politics, as it did in the United Kingdom under the short-term leadership stint of Liz Truss. Now, President Trump is testing the limits as he pushes forward a multitrillion-dollar budget plan for the next 10 years. Trump and House Republicans call it the tax cut and budget plan the “big, beautiful bill,” but today, the bond markets signaled their displeasure. Furthermore, the Financial Times warned...

U.S. Massive Deficits Pose ‘Significant Risk’ for the Global Economy

19Apr

By Patti MohrNo Comments

Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief

U.S. Massive Deficits Pose ‘Significant Risk’ for the Global Economy

IMF Warns the United States and China about Massive Deficits April 19, 2024--Even though consumer prices are coming down, high interest rates due to U.S. and China's deficits pose significant costs to other countries and carry a risk to global financial stability, the International Monetary Fund warned this week. "Loose fiscal policy in the United States exerts upward pressure on global interest rates and the dollar. It pushes up funding costs in the rest of the world, thereby exacerbating existing fragilities and risks," said Vitor Gaspar, IMF director of fiscal affairs. Rising Debt Poses Costs By the end of the decade, global debt is likely to reach 99 percent of global GDP. The rising debt levels are increasing "volatility in the United States, raising risks elsewhere thr...

22Sep

By Patti MohrNo Comments

Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Bit

Fed Keeps Rate At 5.25

Fed Chair Says Consumer Credit Market Is Normal September 22, 2023—The Federal Reserve kept its main rate, the Federal Funds Rate, unchanged on Wednesday at 5.25 percent. Fed Chair Jerome Powell said there was unanimous support among board members for keeping rates steady. He predicted one more rate hike before the end of the year then declining rates beginning next year. "Now we're fairly close, we think, to where we need to get. It's just a question of reaching theright stance," he said at a press conference on Wednesday. Specifically, Powell estimated the federal funds rate would reach 5.6 percent by the end of the year, come down to 5.1 percent in 2024, then further decline to 3.9 percent in 2025. The rate impacts mortgages, consumer credit as well as interest the governm...

13Sep

By Patti MohrNo Comments

Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Bit

U.S. Inflation Inches Up To 3.7 Percent

September 13, 2023—Consumer prices in the United States increased to an annual rate of 3.7 percent in August, up from 3.2 percent in July. Driving the CPI index higher was a spike in energy costs. Gasoline prices spiked by 10.5 percent from July to August while the cost of other fuels rose by 9.1 percent. Even so, energy prices decreased over the last year by 3.6 percent over the previous year. Meanwhile, food prices rose by only 0.2 percent in August and 4.3 percent over the past 12 months. The cost of used cars and trucks dipped while new vehicles cost slightly more. Observers expect the U.S. Federal Reserve to leave interest rates as they are when board members meet September 19-20. For specifics, see the Bureau of Labor Statistics release.

5 Takeaways From Fed Chair Powell’s Jackson Hole Speech

25Aug

By Patti MohrNo Comments

Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

5 Takeaways From Fed Chair Powell’s Jackson Hole Speech

August 25, 2023—Federal Reserve Chair Jerome Powell delivered a carefully worded speech this morning to the annual economic symposium in Jackson Hole, Wyoming. The Kansas City Federal Reserve hosts the event. Moran, Wyoming, US, on Wednesday, Aug. 23, 2023. Photographer: David Paul Morris/Bloomberg Here are the key takeaways from the highly anticipated speech: 1. 3 Percent Is Not The New 2 Percent With the annual inflation rate in the United States down to 3.2 percent, some observers have wondered if that lower rate would suffice. Powell made clear it does not. The target is still 2 percent, and the central bank will not end a restrictive financial policy until the rate reaches that. "It is the Fed's job to bring inflation down to our 2 percent goal, and we will do so," Po...

US Fed Raises Funds Rate By Quarter Basis Point

26Jul

By Patti MohrNo Comments

Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Bit

US Fed Raises Funds Rate By Quarter Basis Point

July 26, 2023—Citing ongoing concerns about elevated inflation, the U.S. Federal Reserve announced today it is raising its Federal Funds rate by a quarter of a basis point to 5.25 to 5.50 percent. Fed Chair Jerome Powell said the economy is weathering the monetary-policy tightening well, and the Federal Reserve is committed to achieving its target of 2 percent inflation. The current U.S. inflation rate is hovering right around 3 percent. The key to whether the Fed's Board of Governors would begin cutting rates, Powell said, would be when inflation comes down in a credible fashion, not when the rate hits 2 percent. He doesn't see the inflation rate dipping down to its 2 percent target until 2025 or thereafter, Powell said during the press conference.

Currency Wars: Dollar Dominance Here To Stay? Maybe. Maybe Not.

16May

By Patti MohrNo Comments

Finance, Currency, Debt, National Budgets & Interest Rates, Geopolitics, Globalization, Disintegration, Types of News: Brief

Currency Wars: Dollar Dominance Here To Stay? Maybe. Maybe Not.

China, India, and Others Vie For Status The United States has a significant economic advantage in having the U.S. dollar serve as the dominant form of global exchange. But several global leaders want to change that. China and Russia have long plotted to bring the dollar down. China wants its yuan to take over as the global currency leader. It's convincing trading partners like Argentina and Brazil to dump the dollar as a means for making trade and instead use the yuan. As Washington Post reporters Meaghan Tobin, Lyric Li, and David Feliba explained in an article today, Argentina's economy is in crisis, and its holdings of U.S. dollars are running thin. As a result, the government agreed last month to pay for $1 billion worth of Chinese imports with yuan. A New BRICS Currency ...