As the week comes to a close, it’s time to catch up on the biggest stories that shaped the week. By Michael BurryFrom the ominous prediction about the US banking system to the Federal Reserve’s strategic move to insulate itself from political interference, here’s a look at the key events that transpired.
The Federal Reserve’s new bond-buying plan shows that banks are weaker than they appear
Michael Burrythe investor who famously predicted the 2008 housing crisis has raised a red flag about the US banking system. He believes that the Fed’s decision to restart Treasury purchases is not a sign of strength, but rather a sign of increasing vulnerability. Burry highlighted the Fed’s plan to initiate “reserve management purchases” (RMPs) as an indicator of the growing fragility of the banking system.
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Trump’s tariffs are rewriting the trade math – the deficit is at its lowest level in five years
President Donald TrumpThe continued use of tariffs as a tool to address the US trade deficit finally paid off in September. The U.S. trade deficit shrank to $52.8 billion, the lowest since June 2020, according to the latest figures from the Census Bureau.
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Related: Cathie Wood says Trump’s new tax cuts will be like ‘Reaganomics’ on steroids
Federal Reserve: ‘Trump-proof’ itself
The Federal Reserve Board unanimously reappointed all twelve regional Reserve Bank presidents and first vice presidents. While this move follows a standard legal scheme, it is seen as a strategic attempt to protect the central bank from political interference. The reappointments secure leadership of the operating arm of the Federal Reserve System for a new five-year term beginning March 1, 2026.
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Economist Justin Wolfers criticizes Trump’s rhetoric about rising prices
Economist Justin Wolfers has criticized the president Donald Trump‘s rhetoric about rising prices and labels this the ‘original sin’ of the economy. Wolfers argued that Trump’s promises about price cuts were never realistic, especially because they rarely occur in a healthy economy. This has led to the current “affordability crisis,” with many Americans still hoping for price drops.
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Trump’s new tax cuts will be like “Reaganomics” on steroids
from ARK Invest Cathie Hout has predicted a historic economic boom, driven by the new government’s fiscal policies. She described the landscape as “Reaganomics on steroids” and attributed it to the combination of aggressive tax cuts and deregulation under President Donald Trump. Wood’s optimism centers on the legislative package she called “OB3” (One Big Beautiful Bill).
Read the full article here.
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Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
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