February 27, 2017

Consumer lending fell dramatically in the two months following President Trump’s election, according to Federal Reserve data published late last week. Overall loans and leases in bank credit fell by 0.7 percent in December and by 0.9 percent in January. The Fed metric grew by 6.3 percent on an annualized rate last year, and it hasn’t contracted on a quarterly basis since 2011. The steep drop in the credit market indicator contrasts starkly with the recent rise in major banks’ stock prices, as the Financial…

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The first Trump administration budget proposal will leave Social Security and Medicare benefits untouched, but other major federal programs face deep cuts. When asked about reductions to the two major retirement programs, Treasury Secretary Steve Mnuchin told Fox News on Sunday: “Don’t expect to see that as part of this budget.” The administration, however, will be aiming to push for significant reductions in other unspecified “social safety net programs,” according to a report published the same day by The New York Times.  Full details have…

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