U.S. Department of the Treasury

Evaluating the Trickle-Down Effect of Federal Funding Squeezes for States and Local Governments

With the deficit in the United States now over $22 trillion, there may come a day when deficits and credit actually matter again. Until then, Europe and Japan are operating ...
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When Will $1 Trillion Deficits Start to Matter?

With another round of Presidential candidate debates on the docket, it's time to talk about deficits. Realistically, it seems no one in Washington, D.C. has any great plans about how ...
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Overhauling Fannie Mae and Freddie Mac Won’t Be Easy or Cheap

Two government-sponsored entities (GSEs) hold about half of the nation's mortgage debt. Fannie Mae and Freddie Mac, as the GSEs are known, were placed under Department of the Treasury conservatorship ...
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Defying Logic: Germany Sells 30-Year Bonds for Negative Yields

The media loves pointing to the inverted yield curve, negative interest rates and the imminent recession. There might be a reason why it matters, even if the media keeps jumping ...
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While Negative US Interest Rates Are Possible, Odds of Reality Look Less Than Zero

Many articles have pondered the short-term and long-term impacts of negative interest rates around the globe. Some of these concerns are recent, while some have persisted for years. One recent ...
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The Big Trade War If: What If China Decides to Sell its $1.11 Trillion in US Treasuries?

With the United States and China trade war becoming more fierce, the stock market tanked and the bond market rallied on news that China devalued its currency and is blocking ...
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China Lowering US Treasury Debt Holdings Brings More Risk to China Than US

The belief has become widespread that trade wars, particularly deep and long-lasting ones, result in no winners. The United States and China are now involved in the beginnings of a trade ...
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Does $66 Trillion in Government Debt Mean the World Is Drowning in Debt?

It is far from a secret that the United States and other nations around the world have what sounds like an insurmountable debt load. With trillions and trillions owed to ...
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Federal Reserve Payments to Treasury Decline With Balance Sheet Shrinking

The Federal Reserve announced on Thursday that it had sent payments of approximately $65.4 billion back to the U.S. Treasury from its estimated net income in 2018. The Federal Reserve ...
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Massive Bank Profits Are Surging Under Tax Reform, Net Interest Income, Higher Loan Balances

The banking industry has seen its profits surge under a strong economy and tax reform. The Federal Deposit Insurance Corporation (FDIC) has released its Quarterly Banking Profile for the second ...
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10 Key Takeaways From Fed Chair Powell’s First Testimony to Congress

Investors have historically had a hard time getting used to a new Federal Reserve chair. After all, you have to transition from years of the same sort of actions under ...
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Can Mario Draghi Prevent the Dollar Devaluation From Interfering With a Eurozone Recovery?

The European Central Bank (ECB) voted to leave interest rates and its policies unchanged on Thursday. The lack of a move rejected the thought that the ECB would scale back ...
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China Overblown Treasury Risk, but Europe, Japan and US Fed Pose Larger Risks

The recent rise in U.S. interest rates was enough that some of the bull market's biggest cheerleaders started to get at least a little nervous. It turns out that the ...
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Rising Treasury Yields Already Posing Added Risks to Bull Market in Stocks?

When 24/7 Wall St. ran its 10 serious risks that could wreck the raging bull market in stocks, a quick rise in interest rates was one of those risks. Now ...
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Forget the Fed Rate Hikes — It’s All About Shrinking the $4.5 Trillion Balance Sheet

Forget about being too nervous about the Federal Reserve hiking interest rates. In the September FOMC meeting, Janet Yellen and the FOMC have indicated that most Fed governors are expecting ...
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