Latest news with #USDebt
Daily Mail
a day ago
- Business
- Daily Mail
Home Depot co-founder issues warning for US economy
The co-founder of Home Depot has issued a dire warning about the state of the US economy. Ken Langone, who co-founded the DIY giant in 1978, warned that US debt is spiraling out of control and was a 'scary' indicator for the state of the economy. 'Look at the amount of debt we raise every year,' Langone told Fox Business. 'What is it today? Thirty-six, thirty-seven [trillion dollars], going up a trillion a year in interest alone. That's scary,' he told the outlet. The billionaire said he hoped Washington would heed his warning that 'we have to be mindful of the importance of our status in the world economy and the world markets. 'If we fritter that away, we're in trouble,' the 89-year-old said. 'Four weeks ago, we couldn't float a 20-year bond. They were unbiased. That's a dangerous signal. That's the beginning,' Langone said referencing recent crises in the bond market. The Treasury bond market has been rattled in recent weeks due to Trump's tariff policies and concerns over the effect of the administration's sweeping tax bill on ballooning government debt. US government bonds have traditionally been seen as one of the world's safest assets, as well as a place where investors can park their money in times of volatility. However, investors are looking upon treasury bonds less favorably and ratings agencies have even downgraded the US's credit rating. 'That should make us say, "Hey, wait a minute." When the integrity of our debt is subject to question, the next thing is your currency,' Langone added. 'I do think it's time to get some balance here.' The GOP megadonor, who once backed Trump, previously savaged the President's tariff policies as '[expletive].' Langone criticized the scope and timing of Trump's tariff announcement that triggered a market collapse, claiming the President was poorly advised and his math did not make sense. 'I don't understand the goddamn formula,' Langone, who supported Trump in 2016 and has a net worth of $8.4 billion, told The Financial Times in April. 'I believe [Trump's] been poorly advised by his advisers about this trade situation — and the formula they're applying.' Langone said the escalating geopolitical situation in the Middle East is adding fuel to the fire. 'We've now got this Iranian thing to go along with tariffs,' Langone said on Tuesday. 'I think people are getting cautious. And the facts and numbers that came out today indicated that things are slowing,' the businessman said, referring to weak sales and manufacturing data. It comes as the Federal Reserve also expressed caution about the economy by holding interest rates steady at its latest meeting on Wednesday. Federal Reserve chair Jerome Powell said the full effect of Trump's trade policies have not yet become clear, but that he expects they will drive up prices. The central bank held the benchmark rate steady between 4.25 and 4.5 percent, but officials said they expect to cut rates twice before the end of the year. Trump lashed out at Powell following the announcement.
Al Arabiya
2 days ago
- Business
- Al Arabiya
Taiwan central bank says US debt rising too fast may impact trust in Treasuries
Taiwan's central bank governor warned on Saturday that rapidly rising US debt could be 'unfavorable' to the outlook for US Treasuries and that US President Donald Trump's trade policies have made investors cautious. Taiwan's $593 billion in foreign exchange reserves are more than 80 percent made up of US Treasury bonds, according to the central bank, which said earlier this month that Treasuries were 'sound' and still favored by investors. It added there were no worries about the dollar's position as the leading international reserve currency. Governor Yang Chin-long, in a speech posted on the central bank's website, said Trump's repeated criticisms of the US Federal Reserve's monetary policy have caused concerns about its independence. 'In addition, Trump 2.0's trade policy has made investors hesitant about holding US Treasury bonds; Trump's budget, the 'One Big Beautiful Bill Act,' may cause US debt to expand too quickly, which is unfavorable to the outlook for US sovereign debt,' he said. 'All of these have had a significant impact on the international monetary system centered on the US dollar and based on US creditworthiness.' Trump's sweeping tax-cut and spending bill is the centerpiece of his domestic agenda. The bill would lead to a larger-than-expected $2.8 trillion increase in the federal deficit over the decade, despite a boost to US economic output, the nonpartisan Congressional Budget Office projected on Tuesday. Trump, in his first few weeks in office, also announced sweeping tariffs on a broad swathe of countries and trading partners, including Taiwan, only to pause them for 90 days in April to allow for talks to take place. Yang said Trump had been hoping the tariffs could resolve the US trade deficit. 'However, the tariff policy not only fails to solve the structural problems, it will also impact the US economy, and threaten to further affect the outlook for global trade and the economy.'
Yahoo
2 days ago
- Business
- Yahoo
Taiwan central bank says US debt rising too fast may impact trust in Treasuries
TAIPEI (Reuters) -Taiwan's central bank governor warned on Saturday that rapidly rising U.S. debt could be "unfavourable" to the outlook for U.S. Treasuries and that U.S. President Donald Trump's trade policies have made investors cautious. Taiwan's $593 billion in foreign exchange reserves are more than 80% made up of U.S. Treasury bonds, according to the central bank, which said earlier this month that Treasuries were "sound" and still favoured by investors. It added there were no worries about the dollar's position as the leading international reserve currency. Governor Yang Chin-long, in a speech posted on the central bank's website, said Trump's repeated criticisms of the U.S. Federal Reserve's monetary policy have caused concerns about its independence. "In addition, Trump 2.0's trade policy has made investors hesitant about holding U.S. Treasury bonds; Trump's budget, the 'One Big Beautiful Bill Act,' may cause U.S. debt to expand too quickly, which is unfavourable to the outlook for U.S. sovereign debt," he said. "All of these have had a significant impact on the international monetary system centred on the U.S. dollar and based on U.S. creditworthiness." Trump's sweeping tax-cut and spending bill is the centerpiece of his domestic agenda. The bill would lead to a larger-than-expected $2.8 trillion increase in the federal deficit over the decade, despite a boost to U.S. economic output, the nonpartisan Congressional Budget Office projected on Tuesday. Trump, in his first few weeks in office, also announced sweeping tariffs on a broad swathe of countries and trading partners, including Taiwan, only to pause them for 90 days in April to allow for talks to take place. Yang said Trump had been hoping the tariffs could resolve the U.S. trade deficit. "However, the tariff policy not only fails to solve the structural problems, it will also impact the U.S. economy, and threaten to further affect the outlook for global trade and the economy." 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
Yahoo
2 days ago
- Business
- Yahoo
Taiwan central bank says US debt rising too fast may impact trust in Treasuries
TAIPEI (Reuters) -Taiwan's central bank governor warned on Saturday that rapidly rising U.S. debt could be "unfavourable" to the outlook for U.S. Treasuries and that U.S. President Donald Trump's trade policies have made investors cautious. Taiwan's $593 billion in foreign exchange reserves are more than 80% made up of U.S. Treasury bonds, according to the central bank, which said earlier this month that Treasuries were "sound" and still favoured by investors. It added there were no worries about the dollar's position as the leading international reserve currency. Governor Yang Chin-long, in a speech posted on the central bank's website, said Trump's repeated criticisms of the U.S. Federal Reserve's monetary policy have caused concerns about its independence. "In addition, Trump 2.0's trade policy has made investors hesitant about holding U.S. Treasury bonds; Trump's budget, the 'One Big Beautiful Bill Act,' may cause U.S. debt to expand too quickly, which is unfavourable to the outlook for U.S. sovereign debt," he said. "All of these have had a significant impact on the international monetary system centred on the U.S. dollar and based on U.S. creditworthiness." Trump's sweeping tax-cut and spending bill is the centerpiece of his domestic agenda. The bill would lead to a larger-than-expected $2.8 trillion increase in the federal deficit over the decade, despite a boost to U.S. economic output, the nonpartisan Congressional Budget Office projected on Tuesday. Trump, in his first few weeks in office, also announced sweeping tariffs on a broad swathe of countries and trading partners, including Taiwan, only to pause them for 90 days in April to allow for talks to take place. Yang said Trump had been hoping the tariffs could resolve the U.S. trade deficit. "However, the tariff policy not only fails to solve the structural problems, it will also impact the U.S. economy, and threaten to further affect the outlook for global trade and the economy."
Yahoo
2 days ago
- Business
- Yahoo
Taiwan central bank says US debt rising too fast may impact trust in Treasuries
TAIPEI (Reuters) -Taiwan's central bank governor warned on Saturday that rapidly rising U.S. debt could be "unfavourable" to the outlook for U.S. Treasuries and that U.S. President Donald Trump's trade policies have made investors cautious. Taiwan's $593 billion in foreign exchange reserves are more than 80% made up of U.S. Treasury bonds, according to the central bank, which said earlier this month that Treasuries were "sound" and still favoured by investors. It added there were no worries about the dollar's position as the leading international reserve currency. Governor Yang Chin-long, in a speech posted on the central bank's website, said Trump's repeated criticisms of the U.S. Federal Reserve's monetary policy have caused concerns about its independence. "In addition, Trump 2.0's trade policy has made investors hesitant about holding U.S. Treasury bonds; Trump's budget, the 'One Big Beautiful Bill Act,' may cause U.S. debt to expand too quickly, which is unfavourable to the outlook for U.S. sovereign debt," he said. "All of these have had a significant impact on the international monetary system centred on the U.S. dollar and based on U.S. creditworthiness." Trump's sweeping tax-cut and spending bill is the centerpiece of his domestic agenda. The bill would lead to a larger-than-expected $2.8 trillion increase in the federal deficit over the decade, despite a boost to U.S. economic output, the nonpartisan Congressional Budget Office projected on Tuesday. Trump, in his first few weeks in office, also announced sweeping tariffs on a broad swathe of countries and trading partners, including Taiwan, only to pause them for 90 days in April to allow for talks to take place. Yang said Trump had been hoping the tariffs could resolve the U.S. trade deficit. "However, the tariff policy not only fails to solve the structural problems, it will also impact the U.S. economy, and threaten to further affect the outlook for global trade and the economy." 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
