As the week ends, it’s time to catch up on the top stories that shaped the week. From Michael Burry‘s ominous prediction about the U.S. banking system to the Federal Reserve’s strategic move to insulate itself from political interference, here’s a roundup of the key events that unfolded.
Federal Reserve’s New Treasury Buying Plan Shows Banks Are Weaker Than They Look
Michael Burry, the investor who famously predicted the 2008 housing collapse, has raised a red flag about the U.S. banking system. He believes that the Fed’s decision to restart Treasury bill purchases is not a sign of strength but rather a sign of growing fragility. Burry highlighted the Fed’s plan to initiate “reserve management purchases” (RMPs) as an indicator of the banking system’s increasing vulnerability.
Read the full article here.
Trump’s Tariffs Rewrite Trade Math — Deficit Hits 5-Year Low
President Donald Trump‘s persistent use of tariffs as a tool to address America’s trade deficit finally paid off in September. The U.S. trade deficit shrank to $52.8 billion, the lowest since June 2020, as per the latest figures from the Census Bureau.
Read the full article here.
See Also: Cathie Wood Says Trump’s New Tax Cuts Will Be Like ‘Reaganomics’ On Steroids
Federal Reserve: ‘Trump-Proofed’ Itself
The Federal Reserve Board unanimously reappointed all 12 regional Reserve Bank presidents and first vice presidents. This move, although following a standard statutory schedule, is seen as a strategic effort to shield the central bank from political interference. The reappointments secure the leadership of the Federal Reserve System’s operating arm for a new five-year term starting March 1, 2026.
Read the full article here.
Economist Justin Wolfers Criticizes Trump’s Rhetoric On Rising Prices
Economist Justin Wolfers has criticized President Donald Trump‘s rhetoric on rising prices, labeling it as the “original sin” of the economy. Wolfers argued that Trump’s promises of price declines were never realistic, especially since they rarely occur in a healthy economy. This has led to the current “affordability crisis,” with many Americans still hoping for price declines.
Read the full article here.
Trump’s New Tax Cuts Will Be Like ‘Reaganomics’ On Steroids
ARK Invest’s Cathie Wood has predicted a historic economic boom driven by the incoming administration’s fiscal policies. She described the landscape as “Reaganomics on steroids,” attributing this to the combination of aggressive tax cuts and deregulation under President Donald Trump. Wood’s optimism centers on the legislative package she referred to as “OB3” (One Big Beautiful Bill).
Read the full article here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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