Category: Economy

EconomyGovernment

Government Shutdown Costing U.S. Economy $15 Billion Daily, Treasury Secretary Warns

The ongoing federal government shutdown is reportedly costing the U.S. economy approximately $15 billion per day in lost output, according to Treasury Secretary Scott Bessent. The Treasury chief warned the shutdown is beginning to “cut into muscle” of the economy despite what he described as sustainable investment growth in areas including artificial intelligence.

Shutdown’s Economic Impact Reaches $15 Billion Daily

The two-week-old federal government shutdown is costing the U.S. economy approximately $15 billion daily in lost output, Treasury Secretary Scott Bessent stated Wednesday. According to reports from Washington, Bessent put this specific estimate on the economic toll while urging Democratic lawmakers to “be heroes” and side with Republicans to end the impasse.

by Priya Kapoor
BusinessEconomy

Asia-Pacific Markets Mixed Amid Wall Street Gains, Trade Tensions

Asia-Pacific markets were poised for a divided opening Thursday following Wall Street’s gains driven by strong bank earnings. Investors remain cautious as global trade tensions continue to escalate, with volatility indicators showing increased market uncertainty.

Market Divergence Across Asia-Pacific Region

Asia-Pacific markets were reportedly set for a mixed opening Thursday, according to market analysis, following Wall Street’s gains during a volatile trading session. The divergence comes as investors continue to monitor developments across the Asia-Pacific region amid ongoing global economic uncertainties.

by Samuel Kim
Economy

Small Caps Hit Record Highs as Analysts Project Year-End Rally

Small-cap stocks have broken out to new record levels with the Russell 2000 Index hitting multiple all-time highs in recent sessions. Analysts suggest the asset class may continue rallying through year-end as investors rotate from large-cap technology stocks amid changing market trends.

Small Caps Reach Historic Milestone

The Russell 2000 Index reportedly reached a new all-time high on Wednesday, marking its fifth record this year according to market reports. Sources indicate the index of small capitalization stocks has shown remarkable strength after first clearing its 200-day moving average in September and subsequently breaking through its previous record high from November 2021.

by Priya Kapoor
EconomyMarkets

Global Markets Rally on Fed Rate Cut Expectations Amid Trade Tensions

Global markets staged a recovery on Wednesday as Federal Reserve Chair Jerome Powell signaled potential rate cuts and the conclusion of quantitative tightening. The rebound comes despite ongoing U.S.-China trade tensions that continue to weigh on investor sentiment.

Market Recovery Fueled by Fed Policy Outlook

Global stocks reportedly rebounded on Wednesday as dovish comments from Federal Reserve Chair Jerome Powell and strong bank earnings lifted investor sentiment, according to Reuters reports. The market recovery followed earlier declines driven by escalating trade tensions between the United States and China.

by Priya Kapoor
EconomyPolicy

U.S. Government Shutdown Creates Global Data Vacuum, Complicates International Policy Decisions

The ongoing U.S. government shutdown has created a significant data vacuum affecting global economic decision-making. International officials warn the lack of reliable U.S. economic information complicates monetary policy and increases error risks.

Global Policymakers Face Data Blindness as U.S. Shutdown Continues

The ongoing U.S. government shutdown has created a significant data vacuum that is complicating economic decision-making worldwide, according to reports from international financial officials. The halt in official U.S. economic data dissemination is affecting policymakers in countries including Japan and the United Kingdom, who rely on insights from the world’s largest economy to inform their own currency, trade, and inflation outlooks.

by Samuel Kim
EconomyPolicy

Tariffs Drive Inflation Higher as Consumers Face Rising Prices, Fed Report Shows

President Trump’s tariffs are contributing to rising inflation as companies grapple with whether to absorb costs or pass them to consumers. The Federal Reserve’s latest Beige Book report indicates price increases across multiple districts while consumer spending shows mixed patterns across income levels.

Tariffs Fuel Inflation Pressures Across US Economy

According to the Federal Reserve’s latest Beige Book report, tariffs implemented by former President Donald Trump are pushing inflation generally higher as businesses face difficult decisions about absorbing costs or passing them to consumers. The report states that “prices rose further during the reporting period” with tariff-induced input cost increases reported across many districts.

by Priya Kapoor
BusinessEconomy

Bank Earnings Lift Markets as AI Infrastructure Deals and Apple Innovations Signal Sector Strength

Financial markets gained momentum Wednesday as banking sector earnings exceeded expectations. Simultaneously, a massive $40 billion data center acquisition signals continued AI infrastructure investment, while Apple’s new M5 chip promises significant AI performance improvements.

Banking Sector Strength Boosts Market Performance

Financial markets reportedly turned positive Wednesday as strong earnings from major banking institutions overshadowed ongoing trade tensions between the U.S. and China. According to market analysis, Bank of America shares jumped more than 3.5% while Morgan Stanley surged 5% following better-than-expected quarterly results. These performances followed solid earnings earlier in the week from Wells Fargo, BlackRock, and Goldman Sachs, with Wells Fargo reportedly hitting an all-time high amid a three-session winning streak exceeding 10%.

by Priya Kapoor