David Wessel @davidmwessel.bsky.social · 7mIn TIME interview, Trump absolves Warsh and blames "very hostile Fed board" (including his appointees Waller and Bowman) for 12-0 vote to raise rates. time.com/article/2026... 120
David Wessel @davidmwessel.bsky.social · 20mUpdated Hutchins Fiscal Impact Measure @brookings.edu shows local, state & federal fiscal policy shaved 0.1 pct pt off Q2 GDP growth. We project fiscal to be moderately restrictive over rest of 2026 and more so in 2027 (assuming no new legislation) www.brookings.edu/articles/hut... 000
David Wessel @davidmwessel.bsky.social · 21hFamily affair: Erin Browne,(confirmed) undersecretary of the Treasury for international affairs, and Francis Browne, nominated to be undersecretary for domestic finance, are siblings. 041
David Wessel @davidmwessel.bsky.social · 30/09/2026Some first-class reporting here: Meta shaved $4 billion of its tax bill last year by claiming data centers are experimental and qualify for R&E tax credit. www.nytimes.com/2026/09/30/t...nytimes.comHow Meta Uses A.I. Data Centers to Avoid Billions in Federal Taxes (Gift Article)Meta is exploiting a lucrative tax break intended to support research and experimentation. Its own accountants say the gambit is risky. 283
David Wessel @davidmwessel.bsky.social · 30/09/2026AI-linked corp debt issuing at far longer maturities than US Tsy: in 2026 so far, avg maturity of corp debt was 13.4 yrs (from 11.5 yrs in 2024). US Tsy: 2.5 yrs vs 6.1 yr in 2024). Interest on corporate AI-related debt is only one pct pt point higher than on Treasuries. www.ft.com/content/a120... 030
David Wessel @davidmwessel.bsky.social · 29/09/2026Cambridge political economist Helen Thompson: "I don’t think we’re ever really going back to a world in which the US acting as a guarantor of passage through the Strait of Hormuz can be taken for granted." www.ft.com/content/5ae5... 3143
David Wessel @davidmwessel.bsky.social · 28/09/2026New NABE economists' survey:23% “very concerned” about the Fed being compromised by political interference in the next few years, down from 49% in February. Still, 40% of respondents are currently “somewhat concerned,” roughly the same level as in February. files.constantcontact.com/668faa28001/... 130
David Wessel @davidmwessel.bsky.social · 28/09/2026Time to buy in Marylebone? House prices in London fell 3.3% in the year to July, the 11th straight month of declines, even before adjusting for inflation. House prices outside of London keep climbing. www.wsj.com/arts-culture... 171
David Wessel @davidmwessel.bsky.social · 28/09/2026www.newyorker.com/culture/cove...newyorker.comBarry Blitt’s “Pulling the Plug”Is an A.I. kill switch possible? 040
David Wessel @davidmwessel.bsky.social · 27/09/2026Blue Cross/Blue Shield: More than 60% of hospital systems are now using AI-enabled technologies that can scan lab results and electronic records to identify secondary diagnoses, which could move a patient into a higher-severity, higher-reimbursement billing category. www.bcbs.com/about-us/ass...bcbs.comBCBSA Analysis How AI Coding Tools Affect Healthcare CostsAnalysis of BCBS claims data found growing use of AI coding tools contribute to higher hospital billing costs and increased healthcare spending. 3127
David Wessel @davidmwessel.bsky.social · 27/09/2026The Fed's proposed rules for stablecoins under GENIUS: For state member banks that it regulates, Fed would set capital requirements to address credit and operational risks of payment stablecoin activities. OCC version of the rules lacks capital requirements. www.federalreserve.gov/newsevents/p...federalreserve.govFederal Reserve Board requests public comment on two proposals related to establishing a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS ActThe Federal Reserve Board on Thursday requested public comment on two proposals related to establishing a regulatory framework for Board-supervised payment sta 210
David Wessel @davidmwessel.bsky.social · 27/09/2026Krugman begins to answer the question: Why are long-term rates rising. He gives four hypotheses, but you have to wait to Part 2 to see which one he buys. paulkrugman.substack.com/p/booms-bomb...paulkrugman.substack.comBooms, Bombs and Bonds: Interest Rates, Part IWhat’s driving interest rates higher? 2111
David Wessel @davidmwessel.bsky.social · 26/09/2026Newly relevant: An April 2025 Hutchins Center @brookings.edu conversation: "Who holds the power of the purse in Washington today." Video & transcript www.brookings.edu/events/who-h... 020
David Wessel @davidmwessel.bsky.social · 26/09/2026Noted: Europe faces potato shortage after summer heat waves baked fields and stunted crop growth. Extreme weather wiped out about 3.1mn tons of potatoes. Production in Europe’s main potato-growing countries forecast to fall from record 27.3mn tons in 2025 to ~20mn in 2026 www.ft.com/content/8eda...ft.comHeatwave triggers potato shortage in EuropeExtreme weather wiped out about 3.1mn tonnes of spuds, worth up to €620mn 0104
David Wessel @davidmwessel.bsky.social · 25/09/2026Eyebrow-raising presentation at @brookings.edu BPEA conference by Columbia's Stijn Van Nieuwerburgh on the enormous scale of the data center build-out and the opaque leverage that's financing it. VIDEO (15 minutes) www.youtube.com/live/UaQDp-G...youtube.comBPEA Fall 2026 Conference Day 2: Presented by The Brookings InstitutionYouTube video by Brookings Institution 1103
Reposted by David WesselAmerican Association of Wine Economists AAWE @wineecon.bsky.social · 25/09/2026Update: Monthly U.S. Wine Exports to Canada, Jan 2015–Jul 2026, and No Recovery in Sight 3199
David Wessel @davidmwessel.bsky.social · 25/09/2026We cannot say we didn't know nytimes.com/2026/09/25/u...nytimes.comInside the Record Summer ICE Surge That Swept Across the U.S.A review of dozens of incidents caught on camera sheds new light on a largely invisible crackdown. 0125
Reposted by David WesselRon Filipkowski @ronfilipkowski.bsky.social · 24/09/2026Chinese media allowed at WH. American media banned in defiance of a court order. 45892513265
David Wessel @davidmwessel.bsky.social · 24/09/2026One in three San Francisco homes sold between Jan. 1 and Sept. 1 were all-cash deals; no mortgage. sfstandard.com/2026/09/20/a...sfstandard.comMortgages are so last year: inside San Francisco’s all-cash crazeThinking of buying a Bay Area home with a mortgage? You might be fighting a losing battle. From $10M AI “quiet-loan” cash drops to parent-funded bidding wars, all-cash buyers are pushing the Bay Area ... 130
Reposted by David WesselDavid Wessel @davidmwessel.bsky.social · 23/09/2026New from Louise Sheiner @brookings.edu and co-authors: State and local govt workers used to make more than private sector counterparts, but that's no longer true. www.brookings.edu/articles/fal...brookings.eduFalling behind? State and local government employee compensation since the Great Recession | BrookingsNew research finds compensation of state & local workers has fallen substantially relative to comparable private sector workers since the Great Recession. 121
Reposted by David WesselNBER @nber.org · 24/09/2026Open call for paper submissions: The Economics of Community Colleges conference April 6-7, 2028 in Cambridge, MA. Full information www.nber.org/economics-co... 02016
David Wessel @davidmwessel.bsky.social · 24/09/2026New from Stijn Van Nieuwerburgh: The AI build-out is huge and financed with an enormous amount of leverage. Firm revenues will have to continue to growth very rapidly to service all this debt, some of which doesn't show up on hyperscaler balance sheets. www.brookings.edu/wp-content/u... 3289
David Wessel @davidmwessel.bsky.social · 24/09/2026Now posted. Papers from the Fall 2026 Brookings Papers on Economic Activity. www.brookings.edu/events/bpea-...brookings.eduBPEA Fall 2026 Conference | Brookings 031
David Wessel @davidmwessel.bsky.social · 23/09/2026New from Louise Sheiner @brookings.edu and co-authors: State and local govt workers used to make more than private sector counterparts, but that's no longer true. www.brookings.edu/articles/fal...brookings.eduFalling behind? State and local government employee compensation since the Great Recession | BrookingsNew research finds compensation of state & local workers has fallen substantially relative to comparable private sector workers since the Great Recession. 121
David Wessel @davidmwessel.bsky.social · 23/09/2026The average 10-year benchmark bond yield of G7 countries has hit 4 per cent this year for the first time since 2008. (OECD) 073
David Wessel @davidmwessel.bsky.social · 23/09/2026Martin Wolf: We see a battle not just between the Fed and Trump, but between a fundamentally strong economy and an irresponsible government. How that ends is one of the most important issues of our era. www.ft.com/content/d2e5...ft.comThe battle between the Fed and TrumpWhat happens when a fundamentally strong economy faces an irresponsible government? 082
David Wessel @davidmwessel.bsky.social · 22/09/2026New from Gian Maria Milesi-Ferretti of @brookings.edu on Japan's historic currency weakness, shrinking global economic weight, and declining creditor role. www.brookings.edu/articles/jap... 020
Reposted by David WesselPolling USA @usapolling.bsky.social · 20/09/2026"Trump's policies have (X) the economy" September 2018: 🟢 Helped: 41% 🔴 Hurt: 26% September 2026: 🔴 Hurt: 55% 🟢 Helped: 26% Hart/Public Opinion / Sept 15, 2026 827473
David Wessel @davidmwessel.bsky.social · 19/09/2026What if all reporters refused to show up for any Trump White House briefings and networks (including Fox) declined to air them to show solidarity with CNN, Politico, and MSNOW? 9175
David Wessel @davidmwessel.bsky.social · 19/09/2026Jonathan Rauch & Pete Wehner: Trump has changed the presidency, eliminated standards, enriched himself, but he hasn't succeeded in changing the culture as he and his accomplices hoped. (Gift article) www.nytimes.com/2026/09/19/o... 030
Reposted by David WesselJed Kolko @jedkolko.bsky.social · 17/09/2026The 2025 American Community Survey should have come out today. But it has been delayed because of unusual political encroachment at Census. ACS drives business and policy decisions, especially in local communities, and is the primary input to Census’s immigration estimates. 118280
David Wessel @davidmwessel.bsky.social · 17/09/2026Census: Median earnings of men who worked full-time, year-round in 2025: $72,380. In 2020: $75,400. (Both in 2025 $) A decline, adjusted for inflation, of -4%. Table here www.census.gov/library/publ.... Since 2000, inflation-adjusted median earnings for these men have grown a slow +0.4% 052
David Wessel @davidmwessel.bsky.social · 16/09/2026If nothing else Warsh has declared his independence from Trump. So much for Elizabeth Warren’s “sock puppet” epithet 300
Reposted by David WesselScott Imberman @imbernomics.bsky.social · 15/09/2026Folks, this is why it’s important to give comments. The courts notice. 01210
David Wessel @davidmwessel.bsky.social · 14/09/2026Holding this on Yom Kippur. I guess they have a lot to atone for. 143
David Wessel @davidmwessel.bsky.social · 14/09/2026!! Plans call for 17.6% of the project’s rental units (44) to be set aside for households earning <80% of area median income. Earmarking >17.5% of units as moderately priced allows developer to boost tower’s height from the currently zoned 250 feet to 262 feet. www.bizjournals.com/washington/n...bizjournals.comMontgomery County approves 250-unit Bethesda residential high-rise - Washington Business JournalA new high-rise could be coming to Bethesda, but the timing depends on market conditions. 010
David Wessel @davidmwessel.bsky.social · 13/09/2026My @brookings.edu colleague Louise Sheiner outlines four scenarios for the impact of AI on the federal debt on Econofact podcast, based on a paper she, Doug Elmendorf and Karen Dynan wrote econofact.org/podcast/ai-a...econofact.orgAI and National Debt | Econofact ChatsLouise Sheiner on whether support for displaced workers, raising taxes on AI profits, or even government ownership of AI companies can help reduce the projected rise in government debt. 021
David Wessel @davidmwessel.bsky.social · 13/09/2026Paul Krugman on Tom Friedman: If world were really flat... paulkrugman.substack.com/p/trade-peac... 071
David Wessel @davidmwessel.bsky.social · 11/09/2026Warsh is going to disappoint the markets next week or disappoint Trump. 0137
David Wessel @davidmwessel.bsky.social · 11/09/2026Houston Chronicle edit page: “You might not love [Paxton's] look, you might not love his television interviews,” Trump said. Take it from some Texans: We don’t love his speeches or his policies either. www.houstonchronicle.com/opinion/edit...houstonchronicle.comTrump was right: Ken Paxton fumbled his 7 minutes in the spotlight | EditorialAt the Republican convention, Ken Paxton got his seven minutes in heaven. Texas voters got a nap, writes the editorial board. 051
David Wessel @davidmwessel.bsky.social · 11/09/2026Matthew Aks, EvercoreISI: Trump’s willingness to even make the $5,000 check proposal, along with other more realistic spending proposals from both sides, underscore that recent market signals have yet to change the conversation on deficits in Washington. 242
David Wessel @davidmwessel.bsky.social · 11/09/2026 Ellen Zentner, Morgan Stanley, TBAC member: "There are emerging-market-type risks in some of the actions the US has been taking. We typically haven’t seen interventionist policies coming out of the US. Or when we have, it has been a formal, institutionalized process.” www.ft.com/content/dd4c...ft.comScott Bessent fails to break ‘fever’ in US bond marketTreasury secretary’s $6bn bond operation is insufficient to stem the recent surge in borrowing costs, investors warn 074
David Wessel @davidmwessel.bsky.social · 11/09/2026WSJ edit page on Trump's $5k: "Trump is resorting to this because voters...don’t think his economic policies have helped them. His tariff tax increases are a big part of the reason. If he repealed those, he’d give the country an economic dividend without spending a dime." www.wsj.com/opinion/dona...wsj.comOpinion | Trump Has a $5,000 Bridge to Sell YouHis latest promise is a classic in vote-buying political cynicism. 073
David Wessel @davidmwessel.bsky.social · 10/09/2026Just posted: New evidence on how insurance premiums have risen faster in Florida than hurricane risk by economists: Judson Boomhower, Patricia Born, Benjamin Collier & Tobias Huber www.brookings.edu/articles/pri...brookings.eduPricing climate risk: Hurricane models and home insurance over the last two decades | BrookingsThis paper examines the relationship between hurricane risk and homeowners insurance premiums in Florida over nearly two decades. 1218
David Wessel @davidmwessel.bsky.social · 10/09/2026NPR asked me for a quick reaction to Trump's vow to send every adult a $5,000 check. Here's what I said: 3205
David Wessel @davidmwessel.bsky.social · 10/09/2026“I’m a lifelong Democrat who votes overwhelmingly with my party-and should the Senate flip in November, I will still be the 51st vote that I ran on,” Fetterman said in a statement to The Washington Sun. washingtonsun.com/2026-electio...washingtonsun.comFetterman Says He Won’t Leave His Party if Democrats Win the SenateThe Pennsylvania senator’s statement came hours after he made a video cameo at Republicans’ convention. 470
David Wessel @davidmwessel.bsky.social · 10/09/2026FT says IMF was poised to name Ricardo Reis as new chief economist until US objected to his criticism of Trump tariffs. Highly regarded economist Silvana Tenreyro got the job. www.ft.com/content/9832...ft.comIMF ditched top candidate for chief economist job over Trump tariff remarksLSE professor Ricardo Reis had said the US president’s trade war would hurt American consumers 3209
David Wessel @davidmwessel.bsky.social · 09/09/2026Bessent sees no difference between being a trader (his old job) and being Treasury Secretary of the United States (his current one.) Speaking at SMU, he warns traders not to bet against the yen, declaring, “I have asymmetric information. I am the house now.” www.ft.com/content/38d7... 2173
David Wessel @davidmwessel.bsky.social · 08/09/2026Is Trump rooting for Ds in Nov? Kansas GOP Sens Moran & Marshall defend jet maker Bombardier from Trump, who says Canadian firm will no longer be able to sell planes in US. Moran notes Bombardier is major employer in Kansas where Marshall faces Adam Hamilton (D) in Nov. thehill.com/homenews/sen...thehill.comGOP senators defend Bombardier after Trump threatKansas Sens. Jerry Moran (R) and Roger Marshall (R) are defending private jet maker Bombardier from growing pressure from President Trump, who on Monday declared the Canadian aerospace company woul… 051
