Latest news with #fiscaldisaster
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
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.'
Bloomberg
19-05-2025
- Business
- Bloomberg
Republicans Risk Fiscal Disaster With Trump Tax Bill, Millstein Says
Jim Millstein, former US Treasury chief restructuring officer and Guggenheim Securities co-chairman, says Republicans and President Donald Trump are risking a "fiscal disaster" by trying to advance their tax and spending package. The GOP bill appears to increase the budget deficit, but when tariff revenues and federal employment cuts are added, the net fiscal impact is smaller and potentially deficit-neutral, according to Bloomberg Intelligence. Millstein is on "Bloomberg Open Interest." (Source: Bloomberg)
