BRIEF COMMENT ON THE DEBT-CEILING AGREEMENT (3:00 pm EDT)
Over the week-end President Joe Biden and Republican House Speaker Kevin McCarthy finally struck a deal on compromise legislation that would avert a first-ever national default. The "debt-ceiling crisis", however, won't be fully resolved until the legislation is passed by both the House and the Senate this week. Any delays in that process could push the final vote into Friday or even the week-end.
We may see a sigh of relief and a strong movement in equity markets as early as tomorrow as the stalemate between Biden and McCarthy has broken, but until the legislation is officially passed by both House and Senate, financial markets could be jittery. We might even see optimism in the markets soar early in the week and possibly be crushed by another stalemate in voting. The House is expected to vote on Wednesday, and the Senate vote will follow at the end of the week. We are at critical junctures in several markets right now, so we will will need to watch all of this very carefully.
Over the week-end President Joe Biden and Republican House Speaker Kevin McCarthy finally struck a deal on compromise legislation that would avert a first-ever national default. The "debt-ceiling crisis", however, won't be fully resolved until the legislation is passed by both the House and the Senate this week. Any delays in that process could push the final vote into Friday or even the week-end.
We may see a sigh of relief and a strong movement in equity markets as early as tomorrow as the stalemate between Biden and McCarthy has broken, but until the legislation is officially passed by both House and Senate, financial markets could be jittery. We might even see optimism in the markets soar early in the week and possibly be crushed by another stalemate in voting. The House is expected to vote on Wednesday, and the Senate vote will follow at the end of the week. We are at critical junctures in several markets right now, so we will will need to watch all of this very carefully.
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