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Fiscal Policy

All articles tagged with #fiscal policy

US Deficit Surges to $1.4 Trillion in FY2026 Nine Months In
national9 hours ago

US Deficit Surges to $1.4 Trillion in FY2026 Nine Months In

Nine months into FY2026, the U.S. deficit reached about $1.4 trillion as outlays ($5.5 trillion) surpassed receipts ($4.2 trillion). Most of the shortfall stems from entitlement programs (Social Security, Medicare, Medicaid) and reduced corporate tax revenue tied to policy changes, while individual taxes rose. The debt surpassed 100% of GDP and interest payments neared $1 trillion, prompting calls for entitlement reform and a bipartisan plan to restore fiscal sustainability.

via The Center Square|
#cbo#debt#deficit
Bipartisan push emerges to shore up Social Security security
opinion10 hours ago

Bipartisan push emerges to shore up Social Security security

An editorial argues Social Security’s reserves could run out by 2032, risking a 22% cut in benefits unless reforms are enacted. It highlights means-testing as a promising bipartisan fix, backed by a Ronald Reagan Foundation survey showing broad public support across parties and high earners. While details would spark debate, the piece contends a coalition could implement means-testing to stabilize the program and avert disaster.

via San Diego Union-Tribune|
#bipartisan#fiscal-policy#means-testing
UK Chancellor Watch: Streeting, Miliband and Others Vie for the Treasury
politics18 days ago

UK Chancellor Watch: Streeting, Miliband and Others Vie for the Treasury

With Sir Keir Starmer’s resignation and Andy Burnham expected to push for a new direction, the hunt for a next UK chancellor centers on a slate of candidates including Wes Streeting (bookies’ favorite) and Ed Miliband (second favorite), with Pat McFadden seen as the safest hands and Yvette Cooper as a compromise option. Rachel Reeves could stay, though that’s unlikely, while longshots like Shabana Mahmood, John Healey, Darren Jones and Torsten Bell are also mentioned. The choice will shape how the government tackles high debt, weak growth, welfare reform, defence spending and the economic fallout from global conflicts, with markets weighing the candidate’s ability to deliver a coherent, market-friendly strategy.

via BBC|
#british-economy#chancellor#fiscal-policy
Social Security’s 2032 Crunch: What a Funding Cliff Means for Future Retirees
economy1 month ago

Social Security’s 2032 Crunch: What a Funding Cliff Means for Future Retirees

A new Social Security trustees report projects the program’s trust fund will be exhausted by 2032, meaning revenues could cover only about 78% of scheduled benefits and retirees could face roughly a 22% across-the-board reduction unless Congress acts. The warning stems from long-term pressures—fewer births, slower workforce growth, reduced immigration, high debt, and policy changes from a 2025 tax bill—combined with an aging population. The piece argues reform will require bipartisan action sooner rather than later to avoid sharper cuts and economic pain.

via The Conversation|
#demographics#economy#fiscal-policy
Bond Market Signals Put US Debt Front and Center Ahead of the Midterms
politics1 month ago

Bond Market Signals Put US Debt Front and Center Ahead of the Midterms

The bond market is signaling inflation risks and growing concern about the U.S. debt trajectory, which could push borrowing costs higher and shape the political debate ahead of the midterms. Investors are watching deficits and policy choices, pressuring lawmakers to address fiscal sustainability and inflation expectations, thereby influencing voter sentiment and campaign messaging around spending, taxes, and national debt.

via AP News|
#bond-market#fiscal-policy#inflation
Bond Markets Warn: Cheap Financing Is Gone for Good
economy1 month ago

Bond Markets Warn: Cheap Financing Is Gone for Good

Global bond markets are signaling that the era of cheaply financed government spending is ending as higher deficits, supply shocks, and AI-related investment push up inflation and long-term yields. In the near term, borrowing costs rise for U.S. homebuyers and companies; globally, yields in Japan and the UK have hit multi-year highs. Investors face dual risks: inflation eroding returns and rates moving higher in the future. Policymakers must choose between relief that could lift rates further and the need to curb inflation, marking a stark shift from the “free lunch” era of financing.

via Axios|
#bond-market#economy#fiscal-policy
Markets ride the Bliss trade on borrowed state backstops
economy2 months ago

Markets ride the Bliss trade on borrowed state backstops

Harvard economist Gita Gopinath argues that stock markets are buoyed by a 'Bliss trade'—the belief that governments will sustain large, lasting support via debt and central-bank backstops—despite energy shocks and rising public debt. The disconnect between rich markets and riskier bonds suggests fragility, and she calls for crisis response that is targeted, fiscally sustainable, and coordinated to avoid a long-term drag on growth.

via Financial Times|
#bliss-trade#central-banks#economy
Debt at 100% of GDP: A Trump-era surge that demands action
politics2 months ago

Debt at 100% of GDP: A Trump-era surge that demands action

John Avlon argues that America’s national debt has surged past 100% of GDP, a milestone he calls a clear, unsustainable trap. The piece contends deficits expanded under Trump and continued under Biden, reversing the Clinton-era balance and revealing a partisan pattern where Republicans decry deficits only when a Democrat is in the White House. Avlon urges a bipartisan approach—raising revenue, trimming costs, modernizing government, and spurring innovation—to grow out of the hole and prevent the U.S. from losing its economic influence.

via Rolling Stone|
#debt#deficits#economy
US debt tops GDP for the first time since WWII, prompting fiscal reform debate
economy2 months ago

US debt tops GDP for the first time since WWII, prompting fiscal reform debate

America's national debt now exceeds its GDP for the first time since World War II, with debt held by the public around $31.27 trillion and GDP about $31.22 trillion (gross debt near $39 trillion). The rise is driven by higher spending, tax cuts, interest costs, and aging-entitlements. The CBO projects debt held by the public to reach roughly $53 trillion by 2036, lifting the debt-to-GDP ratio to about 120% unless deficits are reduced, and groups urge a 3% of GDP deficit target to stabilize the path. Risks include higher interest costs crowding out programs, potential market confidence hits, and inflationary pressure, though some observers say the economy's growth and strong demand for U.S. debt keep the situation from an immediate crisis.

via CBS News|
#cbo-forecast#debt-to-gdp#economy
IMF urges targeted cash aid over broad fuel subsidies amid energy shock
economy2 months ago

IMF urges targeted cash aid over broad fuel subsidies amid energy shock

The IMF cautions that war-driven energy price spikes strain public finances and urges governments to drop broad fuel subsidies in favor of targeted, temporary cash transfers to preserve price signals and curb inflation, warning debt levels are rising and could reach about 100% of GDP by 2029; policymakers should still plan medium-term consolidation once the crisis subsides.

via Reuters|
#debt#economy#energy
Cap Social Security at $100K for the wealthiest retirees, editors say
opinion3 months ago

Cap Social Security at $100K for the wealthiest retirees, editors say

The Washington Post Editorial Board argues that with a looming federal debt and large deficits, Social Security is projected to pay six-figure benefits to some wealthy seniors; capping benefits for the wealthiest retirees (starting at $100,000 annually) would be a prudent first step in reforming the program and slowing spending.

via The Washington Post|
#compensation-and-benefits#fiscal-policy#government-pensions-and-social-security