Especially in September, the clock is always running at Capitol Hill.
As an institution, Congress operates at its own time. Legislation can take years to develop and enter and exit new sessions and election cycles. But even Congress can’t stop what is expected to be a confrontation over time and US borrowing limits.
Yes, Congress is back in the debt limit debate. This year, debt caps and federal budgets are running on the same timeline. The Congressional Budget Office estimates that the debt cap drop dead date could be October or November, but Congress must address both by the end of September.
Investor patience diminishes without guarantee as soon as that time runs out if no trades take place this week.
Democrats and Republicans will use all of their personalities, politics, and parliamentary procedures to try to identify what each party wants from each other towards the end of September. Republicans are opposed to raising the country’s borrowing limits. And the Democrats seem ready to actually get the Republicans to vote against it. Such a vote would shut down the government and probably cause a default.
“Failure to raise debt limits will have absolutely devastating economic consequences,” Treasury Secretary Janet Yellen warned the Senate subcommittee in June. “I believe it will cause a financial crisis. It will threaten American jobs and savings when we are still recovering from the COVID pandemic.”
The political negotiations are intertwined with President Joe Biden’s $ 3.5 trillion infrastructure plan, the Democratic Party’s voting rights law, and pressing questions about Afghanistan’s poor withdrawal.
The investment market has focused on strong corporate financial performance and stronger economic data, while being wary of inflation, the Federal Reserve, and variants of the COVID-19 Delta.
Politics was a chatter in the background, but the clock for Congress to make big spending and borrowing decisions is ticking, and who blinks first, that is, lacks time in the politician’s and investor’s portfolio. I am.
This year, debt caps and federal budgets are running on the same timeline. Congress needs to address both by the end of September.
Financial journalist Tom Hudson hosts the “Sunshine Economy” at WLRN-FM in Miami and is Vice President of News. He is a former co-anchor and editor-in-chief of the Nightly Business Report on public television. Follow him on Twitter @ HudsonsView.
September Countdown for Congress-Lima News
Source link September Countdown for Congress-Lima News