On August 1, 2023, Fitch Ratings downgraded the U.S. government’s credit rating from AAA to AA+, citing an “erosion of governance.” Pointing to growing federal debt as well as frequent political squabbles regarding our nation’s debt ceiling, Fitch’s downgrade is the first of its kind since Standard & Poor’s...
The fallout from this spring’s deposit crisis is still affecting banks, with many issues surrounding deposits remaining unresolved. Recently, two banks—California’s PacWest Bank and Kansas’s Heartland Tri-State Bank—both shut their doors. Banking insiders say more turmoil could unfold for regional banks. “Regional...
Despite recent declines in the pace of inflation, costs for consumers continue to rise, particularly at the grocery store. For example, according to market research firm NielsenIQ, the cost of mayonnaise rose 23% between May 2022 and May 2023, and applesauce prices rose by 22%. These types of price increases are...
The debt ceiling has been suspended until 2025. Meanwhile, government spending continues to grow while high interest rates inflate the cost of repayment. According to the nonpartisan Committee for a Responsible Federal Budget, the federal government’s budget deficit has grown to $2.1 trillion, with federal spending...
The standard for trading oil contracts has been in U.S. dollars, but members of the BRICS bloc of nations (Brazil, Russia, India, China, and South Africa) and Saudi Arabia have reportedly been discussing a major change to the international oil industry—specifically, moving from the dollar to alternative currencies....
During testimony on June 21, 2023, Federal Reserve Chairman Jerome Powell said that the fight against inflation ”still has a long way to go.” Federal Reserve officials have since stated that future rate hikes are both likely and necessary. “Policymakers forecast two additional increases this year, more than expected,...
Some Americans prefer to wait until after elections before making decisions regarding their portfolios. But no matter who resides in the White House or holds a majority in Congress, some macroeconomic conditions, such as the growing national debt, continue to affect the economy. “Federal debt held by the public is...
Inflation persists at elevated levels despite recent declines. Staples like food and rent continue to increase, and the long-term effects of inflation continue to wither away the power of the U.S. dollar. For retirees, “sticky” inflation could mean delaying their retirement plans, living on smaller budgets, or even...
Over the last several years, nations around the world have been exploring—and even implementing—digital currencies. This includes the United States: In March 2022, President Biden signed Executive Order 14067, requiring the government to assess, among other things, the risks and benefits of creating a central bank...
Bank deposit withdrawals reached multi-decade highs during the first quarter of 2023, according to data released by the Federal Deposit Insurance Corporation (FDIC) on May 31, 2023. The FDIC also says the number of banks with “financial, operational, or managerial weaknesses” increased in the first quarter of 2023....
Seven large companies filed for Chapter 11 bankruptcy protection between May 13 and May 15, 2023—the largest number of filings on record during a 48-hour period since at least 2008, according to Bloomberg. An article published by the media outlet suggests that one factor contributing to this rise in bankruptcies is...
The average American’s sense of financial security has declined over the past two years, according to the results of the May 2023 IPSOS Country Financial Security Index Report. Consumers are now searching for financial protection in the face of economic pessimism. Public financial sentiment is negative. Retiree...
