“The [U.S.] federal budget deficit is growing faster than
expected as President Trump’s spending and tax cut policies force the United
States to borrow increasing sums of money.”[1]
This observation was made just after the Federal Reserve Bank relented under
pressure from the White House to lower interest rates because bond investors
had been investing with a possible future recession in mind. With the U.S.
Government’s accumulated debt standing at $22.4 trillion and interest rates
already low, the limits to both fiscal and monetary policy were apparent even
if most Americans in the political and business elite were focused on avoiding
a possible recession in 2020.
The full essay is at "Overused Fiscal and Monetary Tools."
See also: Skip Worden, Essays on Two Federal Empires. Available at Amazon.
1. Jim Tankersley and Emily Cochrane, “Budget Deficit Is Set to Surge Past $1
Trillion,” The New York Times, August
22, 2019.