Latest news with #JimMillstein
Bloomberg
19-05-2025
- Business
- Bloomberg
Guggenheim's Millstein Warns of Potential ‘Fiscal Disaster'
Congressional Republicans risk ' fiscal disaster ' if a recession hits as they push through sweeping tax cuts, Guggenheim Securities Co-Chair Jim Millstein warned. 'What today is 6.4% of GDP as a deficit, a $2.4 trillion deficit, could easily expand to $4 trillion if we had a recession,' Millstein said in an interview on Bloomberg Television. The cost estimates of the current GOP package 'assume consistent economic growth. So imagine we have a recession. In the last five or six recessions, the budget deficit actually blows out because tax revenues go down and spending increases.' A key House committee advanced President Donald Trump's giant tax and spending bill over the weekend. The Joint Committee on Taxation had pegged the total cost of the bill at $3.8 trillion over the next decade, though an analysis by the Committee for a Responsible Federal Budget says the outcome will be more dire. Long term Treasury yields have been rising this month in the wake of investor fiscal concern. Yields on the 30-year bond breached 5% Monday in the aftermath of Moody's announcement Friday that it was joining other ratings agencies in downgrading US sovereign debt to Aa1 from Aaa.
Bloomberg
19-05-2025
- Business
- Bloomberg
Wall Street's Take on the US Downgrade
Get a jump start on the US trading day with Matt Miller, Katie Greifeld and Sonali Basak on "Bloomberg Open Interest." Morgan Stanley's Mike Wilson says buy the dip as Moody's strips the US of it its last triple-A rating. And Wall Street Reacts. Restructuring experts Jim Millstein and Steve Zelin join Bloomberg Open Interest. We also cover the battle for AI supremacy as Nvidia unveils new tech to stay ahead of its competition. (Source: Bloomberg)
Yahoo
19-05-2025
- Business
- Yahoo
Jim Millstein Says US Risks ‘Fiscal Disaster' If Recession Hits
(Bloomberg) -- Washington lawmakers are risking a 'fiscal disaster' if a recession hits as they plow on with their package of sweeping tax cuts, according to Guggenheim Securities Co-Chair Jim Millstein. America, 'Nation of Porches' Maryland's Credit Rating Gets Downgraded as Governor Blames Trump NJ Transit Train Engineers Strike, Disrupting Travel to NYC NYC Commuters Brace for Chaos as NJ Transit Strike Looms Illinois Cuts Revenue Outlook on Economic, Federal-Funding Woes 'What today is 6.4% of GDP as a deficit, a $2.4 trillion deficit, could easily expand to $4 trillion if we had a recession,' Millstein said in an interview on Bloomberg Television. The cost estimates of the current GOP package 'assume consistent economic growth. So imagine we have a recession. In the last five or six recessions, the budget deficit actually blows out because tax revenues go down and spending increases.' A key House committee advanced President Donald Trump's giant tax and spending package. The Joint Committee on Taxation had pegged the total cost of the bill at $3.8 trillion over the next decade, though the Committee for a Responsible Federal Budget analysis says the outcome will be more dire. Long term Treasury yields have been rising this month in wake of investors fiscal concerns. Yields on the 30-year bond breached 5% Monday in the aftermath of Moody's announcement on Friday it was downgrading the US to Aa1 from Aaa, reinforcing Wall Street's growing worries over the nation's fiscal outlook. Ten-year yields are moving upward 'because of the imbalance in the federal government's finances and the huge amount of deficits they have to finance,' said Millstein, who worked in the Treasury Department's financial-stability office under former President Barack Obama. There's going to be 'a huge supply of Treasuries coming to the market.' Ten-year yields will probably rise further, and with it, it's more likely for the key benchmark rate to stay in the 4.5%-to-5.5% range than fall back below 4% - barring a US recession, Millstein told Bloomberg News in a separate interview. And given the interest burden on the debt, he said, that is the US's biggest problem. Millstein recalled in the 1990s when it took the bond market pushing yields sharply higher to help convince US politicians to bring deficit down. He said if it took the same this time it would be worth it. 'Because there really is no check on them right now,' he said, referring to Washington politicians. --With assistance from Sonali Basak and Matthew Miller. Why Apple Still Hasn't Cracked AI Microsoft's CEO on How AI Will Remake Every Company, Including His Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Anthropic Is Trying to Win the AI Race Without Losing Its Soul ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
19-05-2025
- Business
- Bloomberg
Millstein on US Downgrade, Tariffs, Trump Tax Bill
Jim Millstein, former US Treasury chief restructuring officer and Guggenheim Securities co-chairman, talks about Moody's downgrading the US credit rating, Republicans trying to push through President Donald Trump's tax and spending package and the impact of Trump's trade war on the economy. He's on "Bloomberg Open Interest." (Source: Bloomberg)
Bloomberg
19-05-2025
- Business
- Bloomberg
Jim Millstein Says US Risks ‘Fiscal Disaster' If Recession Hits
Washington lawmakers are risking a 'fiscal disaster' if a recession hits as they plow on with their package of sweeping tax cuts, according to Guggenheim Securities Co-Chair Jim Millstein. 'What today is 6.4% of GDP as a deficit, a $2.4 trillion deficit, could easily expand to $4 trillion if we had a recession,' Millstein said in an interview on Bloomberg Television. The cost estimates of the current GOP package 'assume consistent economic growth. So imagine we have a recession. In the last five or six recessions, the budget deficit actually blows out because tax revenues go down and spending increases.'
