IMF Raises Alarm On US Debt, Israel-Hamas War Woes, Trump Jr Slamming Paul Krugman Over Inflation And More: Top Economics News This Week

This week was a roller coaster ride for the global economy, with the US debt situation raising red flags, economists predicting tough times due to the Israel conflict, and ongoing debates regarding inflation. Besides this, the trend of reshoring is gaining momentum, with manufacturing jobs returning to home countries. Here’s a snapshot of some of the key developments this week.

US Debt Situation: A Cause for Concern
The International Monetary Fund (IMF) has raised alarms about the US’s debt situation, labeling it as the “most worrying” among all countries globally. The escalating US debt crisis, fueled by increased government spending, is leading to a rapid rise in corporate defaults. The government’s swift expenditure has resulted in a $1.5 trillion deficit in just the first 11 months of the fiscal year. Read the full article here.

Economic Outlook Amid Israel Conflict
Noted economist Mohamed El-Erian has expressed concerns over the intensifying Israel conflict and its potential impact on the US economy. According to El-Erian, the situation could worsen the already challenging economic conditions, leading to a weaker global economy and increased inflationary pressure. El-Erian issued this warning on Monday, highlighting the difficulties the markets could face under these circumstances. Read the full article here.

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Trump Jr. Criticizes Paul Krugman Over Inflation
Donald Trump Jr. has criticized economist Paul Krugman for downplaying the struggles of everyday people due to inflation. Trump Jr. accused Krugman of being a “democrat propagandist” and misleading the public with selective statistics, while overlooking essential living costs like food, energy, housing, and transportation. Read the full article here.

Reshoring Trend Gains Momentum
The trend of “re-shoring,” “near-shoring,” and “on-shoring” has seen a 216% increase year-over-year since the start of 2022, as per Bloomberg data. This trend has brought in $516 billion in private company investments since President Joe Biden’s inauguration. The reshoring wave has been further fueled by trade wars and the COVID-19 pandemic, highlighting the vulnerabilities of global supply chains. Read the full article here.

Inflation Surges, Reigniting Fed Rate Hike Speculations
The Consumer Price Index (CPI) surpassed economist expectations in September, putting pressure on the Federal Reserve to consider raising interest rates. The US dollar, as tracked by the Invesco DB USD Index Bullish Fund ETF, rose 0.3% minutes after the CPI report. The S&P 500 futures flipped to the red ahead of New York opening bells. Read the full article here.

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Posted In: NewsEconomicsMediaGeneralConsumer Price IndexDonald Trump JrInternational Monetary FundMohamed El-ErianPaul KrugmanWeek in Review
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