BofA's Inflation Prediction, China's Default To McCarthy's Fresh Challenge: Economic Tensions This Week

This week in the economic and political landscape was marked by significant challenges, strategic warnings, and potential conflicts. From McCarthy’s challenge to prevent a government shutdown to China’s default on debt to U.S. bondholders, let’s delve into the details.

McCarthy Faces Fresh Challenge

Kevin McCarthy, the House Minority Leader, faces a fresh challenge even bigger than the debt ceiling – preventing a government shutdown. The challenge comes as the U.S. Treasury Department warned that the U.S. could default on its debt payments in October or November if Congress does not raise the debt ceiling. Read the full article here.

China in Default on Trillion-Dollar Debt

China is in default on a trillion-dollar debt to U.S. bondholders, according to a policy expert. The expert says that the failure to act needs to be addressed by the U.S. government. Read the full article here.

Paul Krugman Smacks Down Recession Truthers

Nobel laureate Paul Krugman smacked down “recession truthers” led by Elon Musk as “crypto cultists.” Krugman argued that the U.S. economy is not in a recession, despite claims to the contrary by some cryptocurrency enthusiasts. Read the full article here.

June Nonfarm Payrolls Miss Estimates

June nonfarm payrolls missed estimates, but unemployment dropped, and wages rose. This mixed bag of results has left investors unsure about the future direction of the economy. Read the full article here.

No Recession: BofA Foresees Steep Drop in Inflation

Bank of America economists predict that there will be no recession, but they do foresee a steep drop in inflation. This prediction comes as the U.S. economy continues to recover from the impacts of the COVID-19 pandemic. Read the full article here.

You can read more on Benzinga's economic coverage by following this link.

Photo via Shutterstock