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In Washington, DC, politics directly intersects with the economy, creating conflicts that are macro, micro, public, and personal. This is not that uncommon.
Senate Republicans support spending cuts by President Joe Biden, putting the country’s debt ceiling at risk. Leaders say a higher rate is needed to avoid a U.S. failure to meet its obligations, which could lead to an economic downturn. does it go to the wire? I hope the problem has been resolved by the time this column goes to print.
In any case, what is important is that political intervention in financial affairs is blatantly manifested. You should be used to it by now. Of course, laissez-faire capitalism still exists, but since the pandemic, a massive government bailout has continued, and much of it seems inevitable. The Committee on a Responsible Federal Budget estimates the government’s total pandemic relief, including quantitative easing, at $7.1 trillion. In regards to recent bank failures, Fortune magazine reported in March that two failed banks had borrowed about $300 billion in emergency funds, mainly to pay off depositors. Laissez-faire purists do not seek such help. They argue that private companies should rise and fall on their own.
But bank failures, pandemic bailouts, and the federal debt crisis could pose serious threats to the stability of the U.S. and global economy, and could trigger government responses.
The economies of most regions have already been hit by a series of unbelievable events, including war, epidemics, instability, inequality, and mass migration to borders around the world to make a living or simply find ways to survive. is receiving
Contrast this with many US states, including New Mexico, experiencing record or near-record low unemployment rates. Interest rates in New Mexico are at 3.5% and have been at that level for months. Variations in many state and national economic indicators (both good and bad) provide a source of optimism as they indicate trends are heading in different directions rather than just downturns. must.
Speaking of optimism, optimism is on the rise among those who think the Fed is done raising rates. The benchmark interest rate target range was 5-5.25%. The Financial Times reported that bond and futures traders are going back and forth in their predictions about the Fed’s next move. Some say the Fed should rethink things. In a recent interview with the Albuquerque Journal, Wall Street Journal editor Emma Tucker pondered whether the Fed’s 2% inflation target is no longer realistic.
“Nobody would dare say that,” Tucker said. “But the 2% target may start to look unrealistic. I hope we’re at the peak of inflation, but I don’t know how far down it will go.”
What we do know is that there are solutions to the ever-changing economic problems facing each state. they can be resolved. . . But for politics.
We have a lot to share internally today, but one of the highlights is the new feature that announces openings and closings along with a map of the stores. And staff writer Kevin Robinson-Avilla joins us as we take us into the world of tech startups with the story of a New Mexico company that has earned top honors for its high-tech, useful innovations.
Until next time.
jleacock@abqjournal.com
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