MONEY MASTER

Key Takeaway: Longer-term US bond yields rose alongside the dollar , with investors bracing for inflationary pressures from Trump’s policy agenda, while Bitcoin soared above $90,000 amid optimism for the cryptocurrency market. Long-term US bond yields and the dollar climbed on Thursday as investors bet that Trump’s plans for tax cuts and tariffs could fuel inflation , potentially keeping interest rates elevated for longer. The 10-year Treasury yield reached 4.483% , its highest since July, while the 30-year yield hovered near a five-month peak . Meanwhile, Bitcoin surged to $90,654 , boosted by views that Trump’s administration could favor cryptocurrencies. Despite a recent US inflation report aligning with expectations, which strengthened bets on a December Fed rate cut , the market outlook for 2025 is clouded by Trump's election, with concerns that increased US deficits and sticky inflation could curb future rate cuts. The dollar index reached a one-year high of 106.77 , with t...

Key Takeaway: Trump’s sweeping tax cut agenda for businesses, workers, and retirees will test Republicans' commitment to controlling the national debt, now at $35 trillion . With a new Republican majority in Congress, President-elect Donald Trump plans to extend his 2017 tax cuts , eliminate several federal agencies, and slash unspent Democratic funds. Early priorities include funding for a US-Mexico border wall and targeting the Department of Education and Consumer Financial Protection Bureau . However, Trump's proposed tax cuts could add $7.5 trillion to the national debt over the next decade, straining a deficit that already exceeded $1.83 trillion in fiscal 2024 . A recent poll shows that 62% of Americans expect Trump’s policies to drive the debt higher . Republicans may use budget reconciliation to bypass the Senate's filibuster rule, although hardline conservatives like Senator Ron Johnson insist on offsetting spending cuts for entitlement programs such as Soci...

With President-elect Donald Trump pledging to eliminate federal income taxes and further reduce corporate taxes, a longstanding tax break on municipal bonds may be at risk. As Republicans near control of both the White House and Congress, lawmakers may seek alternative revenue sources to offset the significant costs of these tax cuts, and the muni bond tax exemption, worth around $40 billion annually, could be an option. The municipal bond exemption , established in 1913, allows investors to avoid taxes on interest from bonds used by local governments to fund infrastructure, like bridges and roads. This feature has been critical for public finance, lowering borrowing costs for municipalities. If removed, state and local governments might face higher borrowing costs , potentially reducing infrastructure projects and placing more financial pressure on taxpayers. Despite bipartisan support for the exemption, some analysts predict select sectors, like education, could see restrictions ...

Republican presidential candidate Donald Trump defended his economic agenda during a speech at the Economic Club of Chicago , arguing that his proposed tariff increases and closer consultations with the Federal Reserve would drive substantial growth, despite economists' warnings that his policies could spur inflation and increase the national debt. Trump dismissed concerns that tariffs could disrupt supply chains or burden consumers, insisting that higher levies would prompt companies to return manufacturing to the U.S. He also downplayed worries about the economic impact of deporting millions of undocumented migrants, claiming legal migration would offset the labor shortage. “We are all about growth,” Trump said, receiving applause for his promise to protect American companies and bring jobs back . Trump, whose proposals include a 60% tariff on Chinese imports and 10% duties on all other imports , argued that tariffs would prevent foreign countries from undermining key U.S. ...

  Australian retail sales saw a surprising increase in August, fueled by recent tax cuts and unseasonably warm weather, leading to heightened consumer spending on dining and clothing. This robust performance supports the argument for keeping interest rates stable in the near term. Sales rose 0.7% from the previous month, surpassing the expected 0.4% increase and marking the largest monthly gain since January, according to official figures released on Tuesday. This follows a modestly revised 0.1% uptick in July. Market Reactions and Economic Indicators In response to the strong retail figures, the Australian dollar strengthened and yields on policy-sensitive three-year government bonds experienced a slight rise. “More people were out dining at cafes and restaurants, enjoying the warm end to the winter months,” noted Robert Ewing , head of business statistics at the Australian Bureau of Statistics. This August marked the warmest on record since 1910 , which likely contributed to t...