The United States: In recent years, the US has been able to run substantial budget deficits without paying higher costs for lax fiscal policy. Is the “free lunch” over?
The Eurozone: The ECB is defending its QE program, suggesting that it helped reduce inequality.
Equities: Futures-based Fed rate hike expectations have diverged from the stock market. Who is right?
Credit: Leveraged loan prices have stabilized below last year’s peak levels.
Global Developments: Here is a risk-return plot for US and EM assets.
Food for Thought: US federal spending:
Edited by Joseph Cohen
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Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen), Ycharts.com, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.
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