Dec 13, 2019

U.S. businesses have more debt than American households

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Data: Federal Reserve; Chart: Axios Visuals

U.S. businesses now have more debt than American households, according to data released by the Fed on Thursday.

Why it matters: It’s the first time corporate borrowing levels has clipped that of households in 28 years and "a potential warning sign for the economy as corporate investment softens," Bloomberg reports.

  • Lower-for-longer interest rates have fueled a borrowing frenzy, and Fed officials have warned about potential risks high corporate debt levels could pose to the record-long economic expansion.

Between the lines: Businesses investment "has historically climbed when borrowing rose."

  • But companies have pulled back on investing in things like new buildings and factories — which fuel economic growth — with CEOs citing trade war uncertainty and worries about a global growth slowdown as the reason.
  • Bloomberg notes companies in some cases used borrowed cash to finance buybacks and dividends.

Go deeper: The states having the most trouble with credit card debt

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Axios
Updated 44 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 7 p.m. ET: 12,859,834 — Total deaths: 567,123 — Total recoveries — 7,062,085 — Map.
  2. U.S.: Total confirmed cases as of 7 p.m. ET: 3,297,501— Total deaths: 135,155 — Total recoveries: 1,006,326 — Total tested: 40,282,176 — Map.
  3. States: Florida smashes single-day record for new coronavirus cases with over 15,000 — NYC reports zero coronavirus deaths for first time since pandemic hit.
  4. Public health: Ex-FDA chief projects "apex" of South's coronavirus curve in 2-3 weeks — Coronavirus testing czar: Lockdowns in hotspots "should be on the table"
  5. Education: Betsy DeVos says schools that don't reopen shouldn't get federal funds — Pelosi accuses Trump of "messing with the health of our children."
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Jonathan Swan
1 hour ago - Politics & Policy

Scoop: How the White House is trying to trap leakers

Illustration: Sarah Grillo/Axios

President Trump's chief of staff, Mark Meadows, has told several White House staffers he's fed specific nuggets of information to suspected leakers to see if they pass them on to reporters — a trap that would confirm his suspicions. "Meadows told me he was doing that," said one former White House official. "I don't know if it ever worked."

Why it matters: This hunt for leakers has put some White House staffers on edge, with multiple officials telling Axios that Meadows has been unusually vocal about his tactics. So far, he's caught only one person, for a minor leak.

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Jacob Knutson
4 hours ago - Politics & Policy

11 GOP congressional nominees support QAnon conspiracy

Lauren Boebert posing in her restaurant in Rifle, Colorado, on April 24. Photo: Emily Kask/AFP

At least 11 Republican congressional nominees have publicly supported or defended the QAnon conspiracy theory movement or some of its tenets — and more aligned with the movement may still find a way onto ballots this year.

Why it matters: Their progress shows how a fringe online forum built on unsubstantiated claims and flagged as a threat by the FBI is seeking a foothold in the U.S. political mainstream.

Go deeper (3 min. read)Arrow