The Defense Secretary emphasizes caution regarding potential military action in Syria: NY Times
President Trump indicates the US might consider rejoining the Trans-Pacific Partnership if better terms can be negotiated: Reuters
Russian legislators suggest implementing a ban on specific US imports: Reuters
US jobless claims decreased by 9,000, nearing a 45-year low: MarketWatch
The import price index for the US remained unchanged in March: MarketWatch
Weak interest in US Treasuries from foreign buyers raises concerns about future interest rates: Bloomberg
The Q1 earnings season kicks off Friday with financial institutions reporting their results: CNBC
The IEA reports that OPEC’s efforts to reduce the oil surplus have been successful: Bloomberg
Eurozone industrial output has decreased for a third consecutive month in February: RTT
The pension crisis for state governments is becoming more severe: Pew Charitable Trusts
California voters will decide on a proposal to split the state into three parts: Mercury News
A key indicator of the Treasury yield curve has begun to decline again, reaching its flattest point in over a decade. This narrowing between short and long-term interest rates commonly signals a slowdown in economic activity. Should the curve invert, with short-term rates surpassing long-term rates, it could indicate an impending recession in the US.
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Discussions in the West about a potential attack on Syria could lead to confrontations with Russia: Reuters
The House Speaker announces retirement, throwing GOP strategies for the mid-term elections into disarray: NY Times
Consumer inflation has risen to a one-year high of 2.4%: MarketWatch
Oil prices climb to a three-year high amid escalating tensions in the Middle East: MarketWatch
The Federal Reserve prioritizes trade-war risks over inflation when shaping monetary policy: Bloomberg
Facebook’s Mark Zuckerberg faced more rigorous inquiries during his second day of Congressional testimony: c|net
All members of the Federal Reserve Board confirm the strengthening of the US economy following the latest FOMC meeting minutes: Reuters
The US federal deficit has widened in the first half of this fiscal year: WSJ
The Congressional Budget Office estimates that the federal budget deficit could approach nearly 100% of GDP by 2028: CBO
Outlook for business inflation has nudged up to 2.3% year-over-year, the highest since 2011: Atlanta Fed
On Tuesday, Facebook co-founder Mark Zuckerberg faced a grueling five-hour questioning session in the US Senate. During the hearing, he acknowledged a likely increase in government regulation for social media platforms. “It’s not my stance that there should be no regulation,” he stated, indicating an awareness of the shifting political climate demanding greater oversight. “The key question is what the appropriate regulation should be as the internet continues to play a larger role in daily life.”
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President Trump contemplates a significant military strike in Syria: NY Times
The air traffic control agency alerts about potential missile strikes targeting Syria: Reuters
Russia vetoes a US resolution that condemns the alleged gas attack in Syria: AP
Trump reaches a critical point in the Mueller investigation: The Hill
China reveals plans to encourage additional foreign investment in its financial sector: Reuters
Mark Zuckerberg of Facebook endures a five-hour interrogation from Congress: NY Times
Business groups unite to oppose Trump’s trade tariffs: Bloomberg
Wholesale inflation in the US increased more than anticipated in March: Reuters
Wholesale trade inventories in the US surged by 1% in February, benefiting Q1 GDP: MarketWatch
Small business optimism in the US has slightly decreased, but remains near record highs: MarketWatch
The consumer protection agency in the US has paused enforcement actions under the Trump administration: AP
Atlanta Fed’s GDPNow estimate for US Q1 GDP growth has decreased to 2.0%: Atlanta Fed
Chicago Fed President Charles Evans, traditionally dovish, showcased a more hawkish perspective recently. In a speech on Friday, he mentioned that the Federal Reserve’s target of 2% inflation remains attainable, adding that “continuing slow, gradual increases in rates is essential to ensure that monetary policy isn’t excessively stimulating the economy.”
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Trump states the US has numerous military options available for a potential strike on Syria: Politico
Lawyer Michael Cohen faces scrutiny for possible bank fraud: WaPo
The President of China elaborates on plans to further liberalize the economy: CNBC
Investors respond positively to the Chinese President’s economic address: Bloomberg
The GOP tax plan is anticipated to stimulate growth while increasing the budget deficit: CNBC
Global debt reached a historic high of $237 trillion in 2017: IIF
Iran warns that the US will “regret” abandoning the nuclear agreement: Reuters
New sanctions on the US may affect Russia’s standing as a major emerging market: FT
GOP tax cuts at the federal level prompt a wave of tax increases in various US states: Politico
The US deficit is predicted to surpass $1 trillion by 2020: Bloomberg
In the first week of April, all major asset classes experienced declines, as indicated by a range of exchange-traded products. This marked the first widespread downturn in the markets since early February.
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Syria and Russia accuse Israel of a missile attack on a Syrian airbase: Wall St Journal
Hungary’s nationalist Prime Minister Viktor Orbán secures a third term in office: Reuters
Trump predicts that China will concede first in the ongoing trade dispute: Bloomberg
Officials from the Trump administration tone down their rhetoric regarding the trade conflict with China: WSJ
North Korea expresses willingness to discuss denuclearization: NY Times
Larry Kudlow announces that the White House is considering plans to retract parts of a spending bill: Wash Exam
US hiring growth experienced a significant slowdown in March: Bloomberg
German industrial production saw its largest drop in over two years in February: Reuters
An inversion in the forward curve for the one-month overnight indexed swap rate suggests market concerns: Bloomberg
Many states in the US are grappling with weak revenue growth: The Economist
By Eric A. Posner
Summary via publisher (University of Chicago Press)
The bailouts during the recent financial crisis sparked public outrage due to perceptions of unfairness—they seemed to reward reckless behavior by companies while costing taxpayers billions. If irresponsible investors are not allowed to fail, do we not encourage them to continue reckless practices, ultimately setting up future crises? Beyond ethical considerations, the question arises regarding the legality of the government’s actions in bailing out firms like Bear Stearns and AIG. Eric A. Posner argues that, though the federal government often acted unlawfully in these bailouts, it was done in service of the public interest.
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