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The American economy can be at a critical stage.
For years, the United States government adopted spending, causing greater deficiency and high debt levels that may require trillion dollars in interest payments in the coming decades.
The economic situation can have a terrible impact if that means that the government is forced to restructure its debts, which was previously proposed by billionaire Ray Dalio.
Related: The Economy billionaire message about the economy revolves around the economy
Do not waste the risk of a possible economic account on those who have seen something or two for decades of market analysis, including Michael Bloomberg, the founder of the billionaire of Bloomberg stations that are usually found on the offices of most of the main hedge funds, exchange funds, and trading.
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Bloomberg recently made economic challenges, which currently provides an evaluation that every investor should observe.
The American economy displays cracks in its shields
The federal reserve set itself in an angle.
In 2021, Federal Reserve Chairman Jerome Powell tried to argue that inflation was temporary, only after that shortly after, as the Federal Reserve began the most restricted and anxious monetary policy since the Federal Reserve Chairman fought Paul Volker in the early 1980s.
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The Powell war worked on inflation, but it came at a cost. While inflation fell to less than 3 % of more than 8 % in 2022, the highest interest rates have raised unemployment to 4.1 % from 3.5 % recently in 2023.
The rise in unemployment has led to a reduction in the Federal Reserve Bank rate in the fourth quarter of 2024. However, we have not yet seen any improvement in the job market, and the price cuts appear to have re -inflation, given that the consumer price index showed inflation at 2.8 % in February from 2.4 % in September.
Worse than that, sticky inflation and loss of jobs comes along with a slowdown in economic growth.
ATLANTA FED gross domestic product is expected from the GDP in the first quarter by 3.7 % negative. Although this is likely to improve with more data available, it is very likely that the gross domestic product in the first quarter will be 3.1 % shy during the second and third quarters last year.
Looking at consumer confidence levels, things may get worse. The Consumer Expectation Index is located in the Conference Council 65, south of the 80th level, which indicated stagnation in the past.
There is a greater problem for the American economy
The short -term expectations of the economy are weak. However, long -term expectations may be dangerous frankly.
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Michael Bloomberg has been traveling on the market for a long time. His career extends to the late 1960s in Salomon Brothers, and founded Bloomberg, LP in 1981. Since then, Bloomberg has grown, LP to one of the largest and most influential market data companies on this planet, and turned it into one of the richest people in the world.
Bloomberg believes that the future of America can be at a critical turn, and it does not empty words.
Bloomberg wrote in a Modern article For his news. “Unless Congress changes the path, there will be an account, and it will be dark.”
Bloomberg’s Great Interest: A pile of mountain debt.
Bloomberg said: “Spending the deficit is more than ever,” said Bloomberg. “Investors of US government debts are not limited.”
The United States government spends about $ 7 trillion annually, but it only raises about $ 5 trillion of taxes. As a result, the deficit exceeds 6 % of GDP, or GDP.
More experts:
- The Treasury Secretary has a sharp response 3 word to the decrease in the stock market
- The President of the Federal Reserve has a sharp response 9 words to the recession hadith
- Billionaire Ray Dalio’s scandalous message about economics
If spending continues unabated, the public debt will reach 100 % of the gross domestic product this year and can reach 118 % by 2035.
“The responsible conference will make a decrease in its priority deficit,” Bloomberg said. “The high tariff revenues will not approach the balance between books.”
President Trump’s administration proposed expanding tax cuts from the 2017 tax cuts and jobs law, which is scheduled to end this year.
Bloomberg says that doing this may cost $ 5 trillion over the next decade. While Bloomberg prefers to preserve the aspects of the law, including the deduction of the largest standard income tax, it suggests that other parts of the law are very expensive.
Bloomberg said: “Congress has already been delayed for a long time, but the cost of delay – and worse, has doubled the problem with an additional deficit spending – it will have devastating economic consequences,” Bloomberg said.
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