It looks like the budget rises based on defense spending.
https://www.nytimes.com/live/2025/05/02/us/trump-budget-2026
1 Like
If the FED makes money cheaper we won’t get inflation. We will still get deflation. People won’t want to borrow. People won’t be able to afford to borrow. Corporations will see detioration and not borrow. Along the marginal issues lower rates won’t help.
Risk will rise all year. This means yields will rise out the curve. Less borrowing will happen either way.