A budget deal has potentially been reached by House and Senate negotiators. This was rumored to be in the mix over the past couple weeks. The market response so far has been mixed. Some are seeing this as a relief, since it should prevent another government shutdown. Others are less than thrilled because the issue of raising the debt ceiling will still require attention in February or March of next year. The deal will go to the House and Senate for approval tomorrow.
At first glance the deal appears to consist of more proverbial can kicking. Near-term increased spending for domestic and defense programs will be offset by long-term (over a decade) deficit reduction measures. At the very least it should provide two years of fiscal stability.
The instinctive market response was a higher likelihood of Fed tapering and today we're seeing red across the market indexes. However, markets don't like uncertainty, and ... Log in or subscribe to continue reading.
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