Voodoo Economics
Uncertainty is the enemy of capital expenditure, and we are more uncertain than ever about our economic future.
Increase spending. Cut Taxes. We've seen this movie before. It didn't end well.
The fantasy that tariffs paid to the federal treasury will offset increases in federal spending, and the payment of those same tariffs will not increase inflation is nonsense.
The idea that businesses will invest in new plant and equipment, and onshore manufacturing previously offshored, is also nonsense. Uncertainty is the enemy of capital expenditure.
Fed Projects Higher Unemployment and Higher Inflation Citing Tariffs
The Fed’s outlook has soured vs its March forecast. “We expect a meaningful rise in inflation in the coming months,” said Powell.
Mike Shedlock
IMF warns of ‘major negative shock’ from Trump’s tariffs
Global lender cuts forecasts for every major economy, with UK expected to grow by 1.1% this year, down from 1.6%
Heather Stewart
How Are US Consumers and Firms Responding to Tariffs? - Apollo Academy
The chart book available here looks at how US consumers and firms are responding to tariffs. For companies, new orders…
Torsten Sløk
Intel Will Lay Off Another 15% to 20% of its Work Force
Big job cuts are coming in July.
Mike Shedlock
Report: Microsoft set to slash thousands more jobs in July — sales teams in the crosshairs
Spending on AI is reportedly to blame as Microsoft gears up for more cuts.
Daniel Rubino