September countdown for Congress-Lima News

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Especially in September, the clock is always ticking on Capitol Hill.

As an institution, Congress operates at its own pace. Legislation can take years to develop and enter and exit new sessions and electoral cycles. But even Congress can’t stop what should be a showdown over time and US borrowing limits.

Yes, Congress is back in the debt limit debate. This year, debt ceilings and federal budgets are on the same schedule. The Congressional Budget Office estimates that the deadline for lowering the debt ceiling could be October or November, but Congress must deal with both by the end of September.

The patience of investors wanes without guarantee as soon as this period has elapsed if no transactions take place this week.

Democrats and Republicans will use all of their personalities, politics and parliamentary procedures to try to identify what each party expects from each other towards the end of September. Republicans are opposed to increasing the country’s borrowing limits. And Democrats seem poised to get Republicans to vote against. Such a vote would shut down the government and likely cause default.

“Failure to raise debt limits will have absolutely devastating economic consequences,” Treasury Secretary Janet Yellen warned in June before the Senate subcommittee. “I think this will cause a financial crisis. It will threaten American jobs and economies as we still recover from the COVID pandemic. “

The political negotiations are closely tied to President Joe Biden’s $ 3.5 trillion infrastructure plan, the Democratic Party’s voting rights law, and pressing questions about the poor withdrawal from Afghanistan.

The investment market has focused on strong corporate financial performance and stronger economic data, while wary of inflation, the Federal Reserve and COVID-19 delta variants.

Politics used to be chatter in the background, but the congressional clock for making big spending and borrowing decisions is ticking, and who blinks first – running out of time in the portfolio of the politician and the investor. I am.

This year, debt ceilings and federal budgets are on the same schedule. Congress must deal with both by the end of September.

Financial reporter Tom Hudson hosts “Sunshine Economy” at WLRN-FM in Miami and is vice president of News. He is a former co-presenter and editor of the Nightly Business Report on public television. Follow him on Twitter @ HudsonsView.

September countdown for Congress-Lima News

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