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Read previewSpeaking at the US Treasury Market Conference on Thursday, Treasury Secretary Janet Yellen referenced her predecessors — and their mistakes — often. This story is available exclusively to Business Insider subscribers. "In January 2021, I stepped into a Treasury Department whose focus on financial stability had all but disappeared," she said. "Put simply, we were without crucial tools to identify and help respond to risks to financial stability," she said. Related storiesThere's nothing indicating that a second Trump administration would bring a different attitude toward regulation than his first.
Persons: , Janet Yellen, Donald Trump, Yellen, Trump's, Trump, Steven Mnuchin, Jon Hilsenrath, Kamala Harris Organizations: Service, US Treasury Market Conference, Business, Treasury Department, Federal Reserve, Securities, Exchange, Politico, Trump, Wall Street Locations: Basel III, mull
The U.S. Treasury is currently using accounting maneuvers to pay its bills without breaching the debt ceiling. Photo: Michael Reynolds/ShutterstockU.S. regulators have long insisted that financial institutions have contingency plans for potential crises. A potential crisis now looms: an unprecedented default on Treasury debt. But Congress sets a statutory ceiling on that debt, currently $31.4 trillion, which was reached in January. Treasury is using accounting maneuvers to meet its bills without breaching the ceiling, but it is expected to exhaust those options as early as June or possibly later in the summer.
Banking-sector turmoil raises the odds that the U.S. economy, already widely seen as prone to recession, might actually tip into one. After a week of federal interventions to stabilize the banking system and market volatility driven by investor uncertainty, the economic outlook now hangs on two factors: private- sector confidence and Federal Reserve interest-rate policies.
After the collapse of Silicon Valley Bank and Signature Bank, the Biden administration and regulators are trying to strike a balance that has eluded policy makers in the past: stabilizing the financial system without stirring popular backlash for bailing out banks. President Biden emphasized Monday that executives of both banks would lose their jobs after the firms were taken over by the Federal Deposit Insurance Corp. Depositors will get all of their money back, but investors won’t be protected. Administration officials also have avoided calling on big banks to help solve the problem by purchasing smaller rivals, as the U.S. did in 2008.
Amazon’s pause on construction of its second headquarters in Arlington, Va., sends a downbeat but limited signal about growth. Amazon .com Inc.’s halt to construction of a new headquarters, on top of a parade of high-profile tech layoffs, looks ominous for the economy. But the damage will need to spread much further to signal full-blown recession. When the U.S. has entered recession in the past, weakness has often started in one sector and then spread like brushfire, pulling down a widening array of industries and the people who work in them.
Demand for U.S. workers shows signs of slowing, a long-anticipated development that is showing up in private-sector job postings even while official government reports indicate the labor market keeps running hot. ZipRecruiter Inc. and Recruit Holdings Co., two large online recruiting companies, say their data show the number of job postings is declining more than Labor Department reports of job openings. Investors recently hammered shares of those companies after disappointing earnings reports.
Chesapeake Energy Corp. was one of the biggest stars of the fracking boom, riding high for years on its ability to tap vast troves of American natural gas. By the summer of 2020, the pandemic and lockdowns had caused revenue to dry up, and the company, after a big, ill-timed expansion, filed for bankruptcy protection.
Inflation is often called a tax on the poor, but this time it’s hit middle-income households the hardest. Many low-income households, benefiting from exceptionally low unemployment rates, have found jobs and experienced wage increases that lifted income more than the cost of living, according to studies by the Congressional Budget Office and others. Many were also bolstered by federal payments during the pandemic.
Why Everything Is On Sale: The Bullwhip Effect If it seems like there are more sales lately, it’s because there are. General retailers are shedding excess inventory. Just blame the bullwhip effect. WSJ’s Jon Hilsenrath explains what it is, and what it means for the economy.
Households, retailers and charities nationwide, feeling the pinch of inflation, are bracing for a humbug holiday season. U.S. consumers and businesses have trimmed spending plans for gifts, charitable contributions and holiday events, data show. The penny-pinching threatens to spoil the year-end for many, especially firms and nonprofits that tally their largest share of sales and donations in November and December.
In recent months, officials have noticed that Treasury markets have grown less liquid and become more volatile. Regulators are looking to broaden trading in the immense $24 trillion market for U.S. Treasury securities, a potential power shift away from the small club of big banks that have dominated the market for decades, according to a federal report to be released Thursday. Regulators have been on heightened alert about the stability of the market since March 2020, when Covid-19 disrupted the economy and markets, freezing up trading in Treasury securities. Recent volatility in the Treasury market has added to concerns.
The new order helped to reduce global poverty by bringing work to low-wage countries, especially China. Data note: Percentage of people who live on less than $2.15 a day, 2017 prices; Data source: World Bank
The new order helped to reduce global poverty by bringing work to low-wage countries, especially China. Data note: Percentage of people who live on less than $2.15 a day, 2017 prices; Data source: World Bank
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSec. Yellen has repeatedly said she has no intention of leaving admin, says WSJ's Jon HilsenrathJon Hilsenrath, senior writer at the Wall Street Journal, joins CNBC's 'Squawk Box' to discuss his new book on Treasury Sec. Janet Yellen, titled 'Yellen: The Trailblazing Economist Who Navigated an Era of Upheaval.'
The global economy is once again under strain, but this time without the international cooperation that helped resolve previous post-Cold War crises. Instead, many of the world’s biggest powers are now intent on undermining one another, with unsettling economic implications. “There is a level of weaponizing the economy that we have not seen for, perhaps, decades,” said Adam Posen , president of the Peterson Institute for International Economics. “You’ve got G-20 economies actively trying to harm other G-20 economies. This is a different world.”
Why Everything Is On Sale: The Bullwhip Effect If it seems like there are more sales lately, it’s because there are. General retailers are shedding excess inventory. Just blame the bullwhip effect. WSJ’s Jon Hilsenrath explains what it is, and what it means for the economy.
Liz Truss Announces Resignation as U.K. Prime Minister
  + stars: | 2022-10-20 | by ( ) www.wsj.com   time to read: 1 min
Why Everything Is On Sale: The Bullwhip EffectIf it seems like there are more sales lately, it’s because there are. General retailers are shedding excess inventory. Just blame the bullwhip effect. WSJ’s Jon Hilsenrath explains what it is, and what it means for the economy.
Why Everything Is On Sale: The Bullwhip EffectIf it seems like there are more sales lately, it’s because there are. General retailers are shedding excess inventory. Just blame the bullwhip effect. WSJ’s Jon Hilsenrath explains what it is, and what it means for the economy.
Why Everything Is On Sale: The Bullwhip Effect If it seems like there are more sales lately, it’s because there are. General retailers are shedding excess inventory. Just blame the bullwhip effect. WSJ’s Jon Hilsenrath explains what it is, and what it means for the economy.
What America Gave My Father—And What He Gave Back
  + stars: | 2022-09-28 | by ( Jon Hilsenrath | ) www.wsj.com   time to read: +1 min
It was a foggy September morning in 1941 when he approached Ellis Island on the deck of a boat called the Serpa Pinto. An 11-year-old Jewish refugee separated from his parents, he had spent two years shuttling through French orphanages in flight from the Nazis. Remembering the sight of the statue 80 years later, he was still stirred by his first enchanted vision of freedom. The country has a long history of conflict over newcomers that is at odds with its image of itself as a welcoming melting pot. “The U.S. and the Holocaust” recounts exhaustively the migration barriers and public bigotry that plagued desperate Jewish people seeking refuge in the U.S. in the 1930s and 1940s.
What America Gave My Father—and What He Gave Back
  + stars: | 2022-09-28 | by ( Jon Hilsenrath | ) www.wsj.com   time to read: +1 min
It was a foggy September morning in 1941 when he approached Ellis Island on the deck of a boat called the Serpa Pinto. An 11-year-old Jewish refugee separated from his parents, he had spent two years shuttling through French orphanages in flight from the Nazis. Remembering the sight of the statue 80 years later, he was still stirred by his first enchanted vision of freedom. The country has a long history of conflict over newcomers that is at odds with its image of itself as a welcoming melting pot. “The U.S. and the Holocaust” recounts exhaustively the migration barriers and public bigotry that plagued desperate Jewish people seeking refuge in the U.S. in the 1930s and 1940s.
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