Better Care Reconciliation Act and Coverage Loss, Elevated Mortality Rates for Wisconsin

Estimated elevated mortality levels for the Senate bill is 26,500 for 2026, given the reduction of coverage by 22 million. CAP estimates by the state level indicate Wisconsin coverage of nonelderly will decrease by 394,100. This implies Wisconsin mortality levels will be up by about 475. (For context, 2015 Wisconsin total deaths was 51,251, so 475 constitutes a nearly 1% increase on 2015 deaths…)

Time to update this post to read: “Troubled Kentucky Man Goes on 50 State Killing Spree”. (Although KY excess mortality is only 279 in 2026, so fewer implied deaths than for Speaker Ryan’s AHCA.)

Double Time to Trade War?

From Politico’s Morning Trade:

RAPID PACE OF STEEL PROBE DISCONCERTING: Some Democratic lawmakers could soon press the administration over concerns that a potential Trump decision to restrict steel imports to protect national security could be challenged at the World Trade Organization if the Commerce Department does not provide a convincing basis for any action, Morning Trade has learned.

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Pangloss in Wisconsin

In search of a “supply side success” after the end of the Kansas experiment, conservative observers turn to Wisconsin. The Manhattan Institute’s Mr. Riedl declares victory:

Wisconsin’s job growth over the past six years has been extraordinarily strong.

When last we met Mr. Riedl, he was explaining why fiscal policy could have no impact on GDP because, well, because. That does not augur well for his abilities an economic analysis, and indeed we can easily poke holes into the argument that Wisconsin’s doing just great!

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Fed balance-sheet reduction not scaring anyone

Today the Federal Reserve announced that it is increasing its target for the fed funds rate to a new range of 1 to 1.25%, a development that surprised no one. But something that was not heralded in advance was the announcement that the Fed intends to “begin implementing a balance sheet normalization program this year, provided that the economy evolves broadly as anticipated.” The Fed spelled out in detail exactly what that will entail. Sometime later this year, the Fed will begin limiting the amount of maturing Treasury securities and mortgage-backed securities that it reinvests, initially bringing its balance sheet down by $10 billion each month as its holdings are redeemed. Those amounts will gradually increase each month until after a year balance-sheet reduction reaches a pace of $50 billion per month. That compares with a net increase of $100B/month on the way up during QE1. Given current Fed security holdings of $4.2 trillion, this would reduce the Fed’s security holdings by about 14% per year once it gets into full swing.
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