President Trump is right to worry that disaster aid will end up bailing out the holders of Puerto Rico's bonds, but there are better solutions to that particular problem than cutting off disaster aid to Puerto Rico.
The role of the Federal Reserve has transformed in the past decade, as it has deployed trillions of dollars to boost the U.S. economy while expanding its regulatory oversight of the nation’s financial system.
Sales tax revenues have recovered. Fiscal year 2019, which started in July, should be a good year thanks to Federal disaster aid. The real question though is what happens when Federal aid starts to fall.