Update 667 — Biden’s SOTU SerenadeClarion Call to Get Economic Job Done Displaying a mastery of the venue and appealing directly to Americans watching, President Biden delivered his second State of the Union to an animated joint session of Congress last night, making a convincing case for his economic record and direction. In a performance …
Update 641 — An “Incomplete” on Debt ReliefMidterm View: Education Finance and Future In late August, President Biden announced a student debt cancellation of up to $10k of debt and $20k of debt for Pell Grant recipients, a temporary fix to a larger problem — a move hotly-discussed, as subsidizing “elite students” isn’t popular among …
Update 635 — Democrats Dodge a Bullet:Biden’s Been Working OT on the Railroad Yesterday, President Biden announced a tentative agreement between major freight rail carriers and unions representing the nation’s freight workers. The announcement came just one day before a strike shutting down the freight rail system. Disruptions to shipments caused by a strike could …
Update 610 — CBO: A Mean ReversionRapid Return to Pre-COVID Fiscal Status Yesterday’s CBO report projects this year’s deficit will fall by $1.7 trillion — the single largest nominal one-year reduction in the federal deficit in American history. The deficit this year will be lower than CBO projected it would be before the passage of the American …
Update 608 — Fiscal Policy Landscape:Supps, Reconciliation, Payfors on Horizon Congress’s fiscal debate is currently being dominated by responses to a series of crises at home and abroad. Over the next few weeks, Congress will actively consider a range of supplemental spending bills from a Ukraine aid package, to bills addressing the baby formula shortage, restaurant aid, …
Update 607 — Inflation Eases an InchBut Hits Home(s): Prices, Sales, Rents The main takeaway from yesterday’s CPI report: inflation remains high, though decelerating marginally. CPI increased for consumer goods by 0.3 percent in April, down from the 1.2 percent increase in March. Increases in prices for food, airline fares, new vehicles, and shelter contributed …
Update 604 — Legislative High Season:100-Day Roadmap for Econ. Policy Bills Congress settles back after recess this week, facing a packed to-do list and a ticking clock. The appropriations process for FY2023 is under way. Again, Democrats’ immediate priority is reconciliation. Negotiations with Sen. Manchin focus now on climate and health provisions, but we saw …
Update 603 — Tax as a Class Act:Code’s Impact on Income Inequality This past Monday marked the end of tax filing season for 2022. Average Americans again find themselves paying a higher rate than wealthier filers. OMB estimates that the 400 wealthiest Americans pay an average tax rate of only 8.2 percent, widening inequality. Paying a higher tax …
Update 602 — Symptom vs. Disease:Fighting Inflation by Relieving Costs There is a difference between battling inflation, which is the Fed’s errand, and battling its effects, which is more of a fool’s errand. With prices up 8.5 percent from a year ago and midterm primary season starting next month, the temptation is to focus on easing costs …
Update 601 — Degrees of Debt:Decision Ahead on Student Loans The CPI Report for March, released yesterday, showed prices rose by 8.5 percent during the last 12 months. Energy prices moderated markedly during March. Some predict this will represent the high-water mark of an inflation rate that will remain elevated through the fall. The Biden …
