12/31/2023 0 Comments Gridlock politics"It feels like consensus is that we will get some but not all of the spending proposals passed," Hogan wrote in an email. Hogan explained that markets are keeping a close eye on the bipartisan effort to pass $1 trillion in infrastructure spending and Democrats' effort to add on another $3.5 trillion to revolutionize the country's social safety net.īut, he said, it's not necessarily surprising to see the $3.5 trillion bill curtailed as it makes its way through Congress. Instead, the added angst over the debt ceiling adds to growing fears about the delta variant of Covid-19, pesky inflation and the end of easy Federal Reserve policies, according to Art Hogan, chief market strategist at National Securities. sovereign credit, which in turned whacked demand for Treasurys and pushed yields up.īut investors fears aren't exclusive to the borrowing limit. The mere specter of default led Standard & Poor to downgrade U.S. debt rating, akin to what happened in 2011. "Our current economic recovery would reverse into recession, with billions of dollars of growth and millions of jobs lost."Įven if lawmakers ultimately avoid a technical default, a lengthy last-minute fight over the debt limit could lead to another downgrade of the U.S. "Default could trigger a spike in interest rates, a steep drop in stock prices and other financial turmoil," she added. Biden promises support for Puerto Rico’s Hurricane Fiona recovery as Florida cleans up after Hurricane Ian.Ukrainian ambassador tells Elon Musk to ‘f- off’ after billionaire infuriates nation with Twitter poll.Treasury's financial stability watchdog warns cryptocurrencies could threaten safety of U.S.Biden tells Al Sharpton he will run for president again in 2024.Biden attacks GOP abortion policies in speech marking 100 days since Supreme Court overturned Roe.Treasury Secretary Janet Yellen says 'there is no truth' to report she's leaving agency after midterms.Trump and GOP defend Herschel Walker after abortion accusation rocks Georgia Senate race.Trump asks Supreme Court to intervene in Mar-a-Lago documents dispute.North Korean missile launch raises alarm in Washington.Herschel Walker campaign says it raised over $500,000 after report Georgia Senate hopeful paid for an abortion.Ron DeSantis' response to Hurricane Ian, promises to support rebuilding President Joe Biden praises GOP Florida Gov.Doing so would likely precipitate a historic financial crisis that would compound the damage of the continuing public health emergency," Treasury Secretary Janet Yellen wrote in an op-ed over the weekend. Importantly, even if the Biden administration hadn't authorized any spending - even if Congress had passed zero bills in 2021 - lawmakers would still need to lift the ceiling to pay for legislation passed in prior years. Instead, raising the ceiling is more like increasing the country's credit card limit. Raising or suspending the debt ceiling does not authorize additional fiscal spending. The bigger hurdle is likely the Senate, where lawmakers will need to muster 60 votes to pass such a bill that isn't tied to the separate reconciliation legislation. ![]() ![]() "The American people expect our Republican colleagues to live up to their responsibilities and make good on the debts they proudly helped incur in the December 2020 '908' COVID package that helped American families and small businesses reeling from the COVID crisis." "The legislation to avoid a government shutdown will also include a suspension of the debt limit through December 2022 to once again meet our obligations and protect the full faith and credit of the United States," she added. "This week, the House of Representatives will pass legislation to fund the government through December of this year to avoid a needless government shutdown that would harm American families and our economic recovery before the September 30th deadline," House Speaker Nancy Pelosi, D-Calif., said in press release Monday. Republicans have said they won't help Democrats lift the borrowing limit as a sort-of protest over the trillions of dollars in new spending the Biden administration has proposed.
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