Treasury 10-year yields traded at the lowest level this year on bets the Federal Reserve will affirm its commitment to the pace of bond purchases to support growth and as the U.S. said it may reduce debt-auction sizes.
In macroeconomics, ideas are more powerful than facts. That’s a shame, but it isn’t a criticism. Even with the best will in the world (a condition, admittedly, that’s rarely satisfied) economists who debate fiscal and monetary policy couldn’t settle their disagreements by appealing to facts. Their discipline is too difficult, or too far from being a proper science, for that to happen. Ideas trump data time and again.
U.S. Treasury Secretary Jacob J. Lew came under fire from Republicans and Democrats in the Senate over the Obama administration’s proposal to slow cost-of-living increases for people who receive Social Security benefits.
President Barack Obama’s $3.8 trillion budget offers those Senate Republicans who have shown they’ll negotiate with the administration a possible path to restarting talks on a multiyear deficit-reduction plan.
Elbit Systems Inc., Israel’s biggest private developer of defense technology, is trading at the highest valuation in two years after reducing its reliance on U.S. and European markets by bolstering sales to Asia.