Financial Markets Look Beyond the Government Shutdown

Published on October 9, 2025

The US government shut its doors on October 1. Republicans and Democrats couldn’t agree on a spending bill, so non-essential portions of the government are closed until further notice.

Continue reading on website
Other news

Risky Bank Debt Is Rationally Exuberant

October 9, 2025
One obvious tweety bird is the riskiest type of bank debt, known as perpetual additional tier one bonds. These securities allow regulators to wipe out investors if a bank fails, but to compensate they offer the highest yields for lending to financial firms.

The Delayed Impact of Tariffs

October 9, 2025
The full impact of U.S. import tariffs on the broader economy has yet to be felt and may not happen for some time—or even at all. Economic distortions from tariffs are still filtering through the global economy, but so are offsets such as fiscal and monetary stimulus, as well as spending on artificial intelligence (AI).