What Will Build Back Better Mean for Inflation?
With inflation on track to reach its highest annual rate since 1990, experts and advocates are in disagreement over whether the Build Back Better Act...
Janet Yellen and Jared Bernstein: The Senate Is on Vacation While Americans Starve
Janet Yellen is a Distinguished Fellow in Residence with the Economic Studies Program at the Brookings Institution, a former Chair of the Federal...
Is the Fed Buying Our New Debt?
So far, the legislative response to the COVID-19 pandemic has injected around $1.5 trillion of fiscal support into the economy. In combination with...
Eugene Steuerle: Multi-Trillion Dollar Fiscal and Monetary Gambles
Under pressure from President Trump and worried about a worldwide economic slowdown, the Federal Reserve recently cut short-term interest rates.
Even With Lower Interest Rates, Debt Remains Unsustainable
With the Federal Reserve today announcing a 0.25 percentage point decrease in the federal funds rate, it appears interest rates will remain lower than...
Was the Federal Reserve’s Monetary Tightening Unprecedented?
In a Wall Street Journal op-ed, House Ways and Means Committee Ranking Member Kevin Brady (R-TX) and former National Economic Council director Larry...
Rising Rates Could Further Balloon Interest Spending
Note (5/15/2018): This blog was published before CBO's April 2018 baseline, which provides official estimates of the amount of interest that will be...
The Fed's Effect on Deficits and Debt
As monetary policy watchers descend upon Jackson Hole, Wyoming, for the Federal Reserve Bank of Kansas City’s annual economic policy symposium, we...
How a Fed Rate Increase Could Affect the Budget
Today, the Federal Open Market Committee, the Fed's interest rate setting and deliberative body that meets eight times a year, could announce that...
The Federal Reserve Budget Gimmick In The House Transportation Bill
The transportation bill that the House passed last week contains a budget gimmick worth almost $60 billion (Wall Street Journal Paywall). The...
Yellen: High Debt Could Undermine Flexibility
Federal Reserve Chair Janet Yellen delivered testimony on the Semiannual Monetary Policy report to the Senate Banking Committee on Tuesday. Not...
Fed and Treasury 'rowing in opposite directions'
The Federal Reserve's efforts to help the economy recover through quantitative easing (QE), twisting, and tapering have made front page news without...