Social Security’s Trust Fund Runs Dry in 2032: What Actually Happens

The Social Security trustees now project that the trust fund will be depleted in 2032, one year earlier than their previous estimate. The headlines have left a lot of people thinking the program is going away, but it isn’t. If Congress does nothing, payroll taxes would continue funding most benefits, but payments would be cut by about 22%. That’s the worst-case scenario, not the most likely one. Will breaks down what Congress could do, from changing the wage cap or tax rate to means testing and raising the full retirement age.

Then we turn to interest rates. Longer-term rates are nearing 20-year highs, while expectations for short-term rates have shifted from cuts this year to two Fed hikes. With the 10-year Treasury back at 4.8% and mortgages near 7%, housing is in a freeze. This isn’t just a U.S. debt story, either. Rates are climbing in the UK, Japan, and across Europe. We wrap up with five-year bond returns, what CrowdStrike’s run tells us about misleading market narratives, and the Atlanta Fed’s latest GDPNow forecast for Q3.

https://youtu.be/XBLh3qq-Ua8