- Chicago is lending cash to its underfunded pensions so they have enough money to avoid asset sales to cover retirement checks as they wait for property taxes to come in after a computer issue delayed collections. We have discussed the Chicago BOE paper before; this is a direct impact on how those bonds are paid. We have advised that, should you hold this debt, it would be wise to discuss with our team the attributes of the structure and how that structure is impacted by tax collections (or the lack of) on an annual basis.
- As it relates to jobs, I suspect the term will be “jobs have slowed, but unemployment remains low” and “inflation remains slightly elevated” in the report today. Again, I think Powell would not cut rates if there were not so much pressure on him by the current administration to do so.
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