Edward Lotterman

Economic news for our nation this past week has not been good. In his erstwhile self-appointed role as the fourth branch of government, Elon Musk condemned the budget bill finally passed by the House but stalled in the Senate.

Such criticism by a billionaire egomaniac capable of funding primary challengers to anyone defying his order may not intimidate every senator. But apparently it can scare enough of them to stall the bill — the legitimate flaws in the legislation notwithstanding.

Thus a spending bill that would pile on trillions more in U.S. debt and should have been passed and signed last August for the fiscal year that began in October 2024 still hangs fire. That shovels additional uncertainty onto households, businesses and financial markets already awash with confusion.

At the other end of Pennsylvania Avenue, President Donald Trump once again blasted Federal Reserve Board Chair Jerome Powell over interest rates: “’Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!!” That gave financial market palpitations worldwide.

The common element for these two events is that the daily lives of concerned U.S. citizens will, indeed, be affected by bonds and bond markets this year. Last week in this space, I gave primer on how bonds and bond markets work. This week, we apply it to the U.S. economy.

At the Capitol, regardless of its final details, the GOP’s Big Beautiful Bill will give us higher budget deficits in the years ahead, not lower ones. To finance these, the U.S. Treasury will have to issue at least $1 trillion in new debt — bills, notes or bonds — about every six months going forward. This will be done in the “primary market” in which new bonds are issued.

At the White House, and at the Federal Reserve, the question is whether the Fed will lower or raise interest rates. But it can only do that by increasing or decreasing the money supply. To accomplish that, it will have to buy or sell existing bonds it owns in the secondary market. More on that later.

Bond markets are open to anyone, individuals, insurance companies, pension plans and so on, not only in the United States, but from anywhere in the world. The Minnesota State Retirement System may buy U.S. bonds previously owned by a Russian oligarch via a bank in Cyprus, by the central bank of Denmark, a Fidelity mutual fund or a myriad of other entities.

Since this market is open to all comers, decisions about the Fed buying or selling in it are made by its Federal Open Market Committee, consisting of the seven members of its Board of Governors and the presidents of the system’s 12 district banks. All participate in deliberations, but when it comes to a vote, only five of the 12 district presidents vote in an annual rotation. Minneapolis Fed President Neel Kashkari is not a voting member this year but will be in 2026.

Except for the volumes involved, borrowing money by issuing new bonds is about the same for the U.S. Treasury as it is for Xcel Energy, the BNSF railroad or Minnesota State Colleges and Universities. Public and private entities have investment banks conduct the sale. Given its size, the Treasury auctions new bills, bonds and notes at weekly, monthly or quarterly intervals to large “primary dealers.” These sell on to other buyers. The auction is structured so that the bidders promising the lowest interest rates get the bonds.

Thus the issuing of new bonds to fund federal budget deficits is straightforward. The Treasury pays out interest due and will redeem the bonds when they mature.

Between issuance and maturity, however, Treasury bonds may be bought and sold multiple times in the open market. This gets complicated, especially as the Federal Reserve may be one of many buyers or sellers.

Interest rates vary over time in response to many variables, including risk and transaction costs, but supply and demand are fundamental. How many people have money to lend? How many want to borrow? The interest rate is the price paid for the temporary use of money — by the U.S. government or anyone else.

That price is revealed in the initial issuing of bonds. If governments want to borrow a lot of money, they will have to pay higher interest rates on bonds in order to find willing buyers. And if many people want to invest safely, but few bonds are available, savers have to accept lower returns.

This leads to some poorly understood outcomes when investments can be bought and sold, but that pay fixed interest rates over long periods. If some owners of such bonds want cash, the only way they can be made attractive to buyers is by lowering the sale price below the face value of the bond.

Return to last week’s column’s contract-for-deed example. Suppose someone has a contract with a $100,000 balance due and paying 6% interest. And suppose that someone wants to cash out by selling the contract. However, other contracts are being offered that pay 8%. The only way the seller of the 6% contract can find a buyer is to offer to sell it for less than the $100,000 due. That will give a potential buyer an effective return on their investment equal to alternatives paying higher nominal interest.

Now consider what happens if the U.S. Treasury is borrowing $100 billion per month at 5% interest on 10-year bonds. But suddenly, China or Japan begins selling tens of billions in U.S. Treasurys they had purchased in the past. And suppose China or Japan offers these at prices that make the effective return on money invested for secondary-market buyers greater than what the U.S. Treasury offers on newly issued ones in the primary market. Regardless of what target the Federal Reserve has set for overnight loan rates, the U.S. Treasury will be forced to pay higher interest rates to issue new 10-year bonds to make up the difference. This effectively takes Powell, Trump and the FOMC out of the equation. Since the market determines the price, it also sets the rate.

And because the rate-setting FOMC has to buy and sell in the secondary market, these high rates trickle down to U.S. households and businesses that are seeking everyday loans. The cost of everything goes up.

That is how a foreign country that owns U.S. Treasury bonds can force up interest rates in the U.S. economy even if the Fed changes nothing. That is the poleaxe Chinese Premier Xi Jinping has over his shoulder as he negotiates tariffs with Trump: effectively, “You can put 50% tariffs on our aluminum and steel, but we can push up the interest rates on U.S. home mortgages, farm operating loans, small-business inventory financing and car loans up a half percent. Or a whole percent. Or two.”

Yes, the Federal Reserve could step in and buy the new U.S. Treasurys with money created out of thin air. But that also can cause inflation. And aside from the obvious household impact, a rising Consumer Price Index would force all lenders to raise interest rates to keep inflation-adjusted returns from falling.

And yes, China might get fewer dollars for its U.S. Treasurys than it paid in purchasing them. And yes, all of this maneuvering might nudge the dollar-renminbi exchange rate in a direction adverse to Chinese exporters. But that change might hurt less than tariffs.

In the real world, this is a complicated problem with more than two parties involved. It is more than just bond prices, interest rates and exchange rates. The key lesson, however, is that as an international debtor, even with a large market and having the world’s reserve currency, like the U.S., is vulnerable to actions by its creditors. This is what Musk and the deficit hawks in Congress understand in opposing the Big Beautiful Bill. But political and economic interests are seldom in sync, especially with a guy like Trump in the White House.

No, we are not Paraguay or Burundi that had to borrow from banks in a foreign currency. No lender can suddenly “call in our loan” or suddenly refuse to renew it. But with foreigners owning $9.1 trillion of U.S. Treasury bonds as of March 2025, of which at least $3.9 trillion is held by foreign governments or their central banks, we don’t have nearly as much leeway as many, in and out of the administration, may assume.

Related Articles

Real World Economics: Bond primer part 1: Understanding the market

Real World Economics: Pragmatism, not globalist ideology, drove U.S. trade policy

Real World Economics: Tax bill full of perverse incentives

Real World Economics: Remember the money supply? It’s our main problem

Real World Economics: GDP is important, but must be kept in context

St. Paul economist and writer Edward Lotterman can be reached at stpaul@edlotterman.com.

By KIM COOK, Associated Press

Home decor’s got a split personality this year: Call it “city glow” and “cottage flow.”

At the two international design fairs that I attended — Maison et Objet in France, Ambiente in Germany — acres of exhibition booths were full of Art Deco furnishings, island-vibe rattan seating and lighting, and lots of emphasis on sustainably produced materials.

But a couple of aesthetics drawing crowds were especially interesting.

Capturing the ‘city glow’

One was an exuberant urban vibe I’m nicknaming “city glow.” It’s full of highlighter-hued throw pillows, edgy surrealism, street art and hefty, Brutalist-style furniture — lots of sharp-cornered steel or concrete consoles and lamps that loomed over rooms — as well as rugs and wallcoverings covered in graffiti-style motifs or swaths of vibrant color.

This image released by Oliver Gal shows Dark Dahlia II 3D wall decor. (The Oliver Gal Artist Co. via AP)

Gretchen Rivera, an interior designer in Washington, D.C., sees it as a look that resonates especially with “younger generations who grew up with digital influences. There’s surrealist art, energetic colors and playful, almost toy-like design.”

Interior designer Anton Liakhov in Nice, France, agrees: “For a generation clamoring for creativity and self-expression, it’s loud and in-your-face.”

For surface colors, look at Benjamin Moore’s spicy orange Bryce Canyon or the bubblegum-pink Springtime Bloom. Daydream Apothecary has a whole collection of neon wall paints for intrepid decorators.

This image released by The Oliver Gal Artist Co. shows rococo-inspired frames in high-gloss acrylics paired with playful graphic imagery. (The Oliver Gal Artist Co. via AP)

Sisters Ana and Lola Sánchez use art as a bold form of self-expression at their luxe brand Oliver Gal, in South Florida. It’s known for its handcrafted, statement-making pieces — including large acrylic gummy bears, graphic surfboards and wall art inspired by fashion, pop culture and modern surrealism. The result is a vibrant, edgy aesthetic.

A new collection, Rococo Pop, introduces rococo-inspired frames in high-gloss acrylics paired with playful graphic imagery. “We wanted to take the opulence of 18th century rococo,” notes Ana Sánchez, “and give it a cheeky, pop-art punch.”

“These frames are like little rebels in ballgowns — elegant, over-the-top and totally unexpected,” adds Lola Sánchez.

The style, her sister says, “celebrates contrast. Old World charm meets modern mischief.”

Following the ‘cottage flow’

The other impressive decor style at the design fairs was very different from the urban look. I’m calling this one “cottage flow,” and Liakhov describes it as evoking a “peaceful sanctuary, where you can play around with textures that are anchored in, and in tune with, nature.”

Think nubby woolen throws in mossy hues. Softly burnished wooden tables. Vintage quilts, and dishware. Gingham and garden florals. Landscape prints. Imagery of birds and woodland animals on textiles and wallcoverings.

This image released by Little Greene shows a wallpaper design called Animal Kingdom Pea. (Little Greene via AP)

Etsy’s 2025 spring/summer trend report showed that searches for “French cottage decor” were up over 26,000% compared to 2024.

“I see people embracing a slower pace to life where they can,” says New York-based interior and decor designer Kathy Kuo about the country cottage style.

“The past two decades or so were dominated by a glorification of fast-paced ‘hustle culture’ — trends like cottagecore and coastal grandmother are evidence that the pendulum’s swinging toward taking pleasure in simpler, more nature-adjacent things in life, whether or not you actually live in a country cottage,” she says.

This photo provided by Kathy Kuo Home shows a room she decorated in Windham N.Y., in the cottagecore trend. (Kathy Kuo Home via AP)

Paint colors are also reflecting the trend. A calming sage green called Quietude is HGTV Home by Sherwin-Williams’ color of the year. Little-Greene’s collection has names like Rolling Fog, Tea with Florence and Hammock.

Mixing the styles

Watching design show visitors excitedly discovering new finds among the aisles, I thought THIS is what’s fun about home decorating: You can think as creatively as you like when it comes to your own home.

You’re all about high-octane city nightlife? Come this way.

Scottish crofts, Scandi cabins and cozy porches more your thing? Right over here.

This photo shows cottage-style furniture and décor on display at the Ambiente trade fair in Frankfurt on Feb. 9, 2025. (Kim Cook via AP)

And if you want to mix these two aesthetics? Go for it. There’s space to blend elements of both, says Kuo.

“Design trends are so fluid. I absolutely see the potential to merge these into each other,” she says. “Many city dwellers love time in nature and have an affinity for a more rustic look, while still feeling called to honor their urban environment in their home. I see plenty of modern interior design motifs that are sleek and urban on the surface, but in the details, they’re infused with organic textures and biophilic elements.”

“Really, the best designs are the ones that are personal, rather than perfect,” she adds.

Related Articles

Welcome to kitten season, when animal shelters need all the help they can get

Tradition and change intertwine to create beauty at a century-old arboretum

Can a $700 calendar save your marriage?

Photos: Best and worst looks from the 2025 Met Gala

Watch live: Stars arrive at the 2025 Met Gala

You could display an array of contemporary glass bowls on a curvy walnut credenza. Mix botanical patterns in vibrant, unexpected colors. Soften room elements like a sleek table and industrial-style lamp with boucle or velvet cushions and a fluffy rug. Pair polished concrete floors with vintage-inspired wallcovering.

If you don’t want to mix elements in one space, consider using sliding partitions from one room to another. You’ll create a little style “journey.”

If the recent international design fairs are any indication, you’re going to find loads of fun home decor in stores over the coming months. Get ready to flow

New York-based writer Kim Cook covers design and decor topics regularly for The Associated Press. Follow her on Instagram at @kimcookhome.

By JESSICA DAMIANO

In the garden, the start of the growing season means the return of dirt under our fingernails, the scent of freshly spread mulch and the first blooming roses. In my neighborhood, and perhaps yours, it also means an audible onslaught of lawnmowers, leaf blowers and other tools of the landscaper’s trade.

From 8 a.m. through at least early afternoon — five or six days every week — the hum of power tools and other machines disrupts my peace. But even more concerning is that my peace pales in importance to that of my property’s other residents.

Birds, squirrels, rabbits, frogs, insects and other wildlife are critically affected by human-made noise. They’re outdoors right in the middle of what must seem to them a war zone — with no escape. And the battleground noises that surround them aren’t merely nuisances; they disrupt the basic instincts the animals’ lives depend on.

Instincts such as those that alert them to the presence of predators become masked under the gas-powered cacophony prevalent throughout most of suburbia.

The unnatural sounds can also force birds, bats and insects into changing their feeding, nesting and mating habits, says Kevin Munroe, Long Island Preserve Director for The Nature Conservancy, based in Cold Spring Harbor, New York.

“Quite a few animals communicate primarily through song, and their songs are how they find each other,” Munroe said. Those with soft and quiet songs, like warblers, small species of owls, bats and some species of crickets, for instance, can be so badly drowned out by noise pollution that “they literally cannot build families or reproduce,” he said.

To illustrate the point, Munroe likens the animals’ songs to navigation systems.

“Imagine these songs are the birds’ roadmaps to each other, and imagine you’re using your GPS to get somewhere and all of a sudden it turns off, and that’s the only way you can find your family. Now, with it turned off, there’s no way you’ll find your family. That’s what song is like for these animals,” he said.

Artificial noises from power equipment, traffic, construction and industrial sources, can also cause stress and hearing loss in animals. A University of Georgia study even found that highway noises can elevate heart rates in monarch caterpillars.

Thoughtful planning can reduce the noise

This may seem like a losing battle in modern society, but there are steps we can take to help.

The Nature Conservancy recommends changes to industrial practices that include accounting for sensitive areas when siting noise-producing facilities, such as access roads and compressor stations, and designing them to include sound barriers such as walls, vegetative screening and noise-absorbing equipment.

Altering the timing and duration of noisy activities during breeding and hibernation periods could also reduce adverse effects on wildlife, the organization said.

What you can do at home

On our own properties, small changes can make a big impact. Because birds do their “most important talking to each other” between dawn and 9 a.m., Munroe recommends shifting noisy yardwork later. Another critical time for many species of wildlife is after dark, he said.

“You can play music and have fun, but try not to make any loud noises,” he said.

In addition, creating sound buffers by planting dense native trees, evergreens or deciduous shrubs, and switching from gas- to battery-powered tools, including leaf blowers, string trimmers and chainsaws, are simple things homeowners can do to avoid causing harm.

Educating and introducing change to local communities is important, too. Munroe suggests working with your homeowners association, schools, businesses and churches to limit loud, destructive activity on their properties.

“Talk to local municipalities about their noise ordinances and (encourage them to) create a sound sanctuary in the neighborhood (to protect) wood thrushes, katydids” and other wildlife, he said.

And always observe noise ordinances at home and in public places, like parks.

Wild animals serve as “pollinators, affect pest control and have a positive effect on our agriculture and our economy,” Munroe said. “We want them in our neighborhoods.”

Jessica Damiano writes weekly gardening columns for the AP and publishes the award-winning Weekly Dirt Newsletter. You can sign up here for weekly gardening tips and advice.

For more AP gardening stories, go to https://apnews.com/hub/gardening.

By KATHERINE ROTH, Associated Press

NEW YORK (AP) — My first tip-off were the little things, the high-pitched little things: the doorbell and ringtones my kids could hear but I could not.

Then it was the garbled-sounding conversations, and the accompanying annoyance of having to ask people to repeat themselves. Or worse, giving up and just playing along without being able to follow everything that was being said.

Even then, I stalled for years before finally going through the process of getting a hearing aid. How do you even begin? Will it look clunky and make me feel like a dinosaur? And the cost!

Getting a hearing test, and confirmation that I needed a hearing aid, was just the beginning.

Finding an expert

The doctor handed me a list of places I could go to get fitted. I made some calls and narrowed it down to the places that took my insurance and my zero-interest health care credit card.

The first couple places were demoralizing: I walked in, was told it’d be $7,000 for the “best” option (they mysteriously didn’t happen to have any other options handy), then marched right back out the door, utterly discouraged.

I started asking friends and neighbors whether they wore a hearing aid, or knew anyone at all with a hearing aid, and could point me to a good audiologist.

It took a lot of poking around, but I found one — and it made all the difference.

The joy of reconnecting with the world

I’ve been wearing my hearing aids for several months now, and they are as easy as slipping on a pair of glasses, are almost invisible, have reconnected me with the world, and, as crazy as this may sound, they bring me joy.

This combination of images shows promotional art for Oticon Intent hearing aids. (Oticon via AP)

After talking with a few audiologists around the country, it turns out that my experience is pretty typical.

“There are a lot of people who stall before getting one,” says Meagan P. Bachmann, director of audiology at Atrium Health Wake Forest Baptist, in North Carolina.

“Hearing is important because it connects us with people,” she says. “Multiple studies show that not hearing can affect your ability to connect with others and participate in life, so you have to think of it in terms of overall health. Maybe you no longer go to family events, or you don’t understand your doctor. People start to withdraw. A lot of people come in because it’s gotten so bad that it is impacting their relationships.”

Steps to take

To speed up the process and make it less frustrating, here’s what the pros recommend:

1. Get tested, take the results seriously, and know that many if not most hearing aids these days are small, nearly invisible, rechargeable, and pretty easy to wear and maintain. And believe it or not, hearing aids can be fun — these days, there are colors to choose from and ways to bejewel them. One company, Deafmetal, makes jazzy-looking “safety rings” to help keep hearing aids in place.

Related Articles

This news might ruin your appetite — and summer

St. Paul Corner Drug closing historic soda fountain

NASA-inspired low-vibration belt lowers bone fracture risk

Who’s in charge? CDC’s leadership ‘crisis’ apparent amid new COVID-19 vaccine guidance

More at-home health tests are now available. How to know what’s right for you

2. Shop for an expert audiologist. Look for someone who takes your insurance or any sort of medical credit card you might have, or has a payment plan of some kind, if needed. This is a world at the awkward juncture of consumerism and medical care, but a good audiologist should come across as a medical provider, not a salesperson. And a good audiologist should take the time to work with you to find a hearing aid that meets your individual needs, and also fits your budget.

A good place to start is often with your doctor; with the American Academy of Audiologists, which lists providers on its website; or by word of mouth.

“Although all hearing aids are amplifiers, not everybody needs the same thing,” says Bachmann. “Fitting a hearing aid is an art. It changes the acoustics, and everyone is different. You want someone who listens to your lifestyle needs. Do you have a lot of difficulty with noise? Are you mostly in quiet situations? How much technology do you need, and what kind?”

Greta Stamper, an audiologist at the Mayo Clinic in Jacksonville, Florida, agrees. “Hearing loss is not a one-time thing. It’s a chronic health condition. It should be a partnership between you and your audiologist,” she said. “It’s someone asking you what you’re looking for and how it’s going. You shouldn’t feel pressured or pushed.”

3. A note on cost. Although hearing aids can be pricey, there are affordable options, and a good audiologist should be able to let you try out options at several price points. Insurance often covers much of the cost, and there are ways to pay for the remaining cost in installments. Also, avoidance has pretty high costs as well, audiologists say, and the longer the wait, the harder it may be to solve the problem with a hearing aid. Although there are cheaper hearing aids at big box stores, Bachmann warns that it’s good to check with your audiologist before taking that route. “Some of those hearing aids are locked, so that you’re not allowed to have them programmed by an outside audiologist,” she says.

Remember, says Stamper, that hearing aids are an investment, and usually last between five and six years.

4. Know your rights. “We select what is the most likely to be successful, and if it doesn’t work out you come back and do something else,” says Stamper. She said most states mandate a trial period. In some cases, hearing-aid companies also cover the cost of multiple visits to your audiologist while you are getting used to your new hearing aid and get training in how to use and maintain it.

5. Embrace the process, and expect it to take a little time and a few expert tweaks. Audiologists say your brain needs time to adjust to a hearing aid, and that hearing-aid settings should be adjusted little by little as your brain adapts to them.

“A big misconception is that you can just wear them a couple hours a day. Your brain does better with it if you use them most of the day. Your brain needs to adapt to hearing sounds it hasn’t heard for a while, and it takes the brain awhile to relearn how to process all those sounds,” says Stamper.

6. Be realistic. “Although hearing aids can be enormously beneficial, they may not give you back your normal hearing,” says Stamper. Depending on the situation, there might be limitations to what a hearing aid can do.

“It might just be lots of improvement in the key areas in which you’re struggling,” said Stamper.

Using hearing aids is a process, the audiologists say, and although it requires some patience, it can be well worth the journey.