US budget update
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U.S. President Joe Biden and congressional Democrats are ready to create a frenzy to pass their multi-million dollar economic agenda, avoid debt defaulters and save their growing prospects in the mid-2022 election.
Eight months after entering the White House, Biden will have to overcome a number of hurdles in the coming weeks if he is to live up to his campaign promises and his approval ratings continue to plummet.
On the domestic front, the White House and congressional Democrats split in their discussions on Biden’s $ 1.2tn bilateral infrastructure bill and plans to invest 3.5tn in the Social Security Net. The divisions between moderate and progressive Democrats over the details of the tax hike and the opportunity to propose spending have threatened to drop from the center of Biden’s plan for the world’s largest economy.
The president made a phone call late Friday night with House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer and promised to “stay in touch” with the two top Democrats on the issue over the weekend. Pelosi told Democratic lawmakers on Saturday he wanted to pass the infrastructure package and budget bill by the end of the working week, saying: “The next few days will be a time of intensification.”
Pelosi called on members of the Democratic House to meet Monday evening, when tensions could erupt within the president’s party.
At the same time, the clock is ticking towards a potential budget crisis if there is no agreement on government funding by Friday. Failure to increase the limit may result in a Federal shutdown Or, more dangerously, the Treasury may run out of cash and default on its liabilities in mid-October.
In the midst of all this, Biden’s fall from a new wave of migrants from Haiti on the southern border, the chaotic withdrawal from Afghanistan – which will be the subject of a congressional hearing next week – and its confusing role Covid-19 Helpful, Which has created a cloud of confidence in Biden’s ability to deal with the epidemic.
“I think it’s understandable people are getting frustrated. . . Disappointed, you know, ‘I thought it was going to get better. I thought everything was going well, “Biden acknowledged Friday in a statement from the White House.
Democratic political strategists and lawmakers are concerned that Biden’s ratification ratings could jeopardize his party’s chances of retaining control of Congress next year. While Democrats were comforted by Governor Gavin News’ comfortable victory in California’s recall election this month, there are growing fears that Virginia may lose governorship in November if the political mood continues to be bitter for them.
“The president’s policies are popular but people are not necessarily listening to them,” warned Josh Schwarin, a former Democratic political ally at Saratoga Strategies.
Schwarin believes an agreement in Congress on Biden’s economic legislation will eventually hit. “It will be discussed until the last minute, and it will be suspicious – until it happens,” he said.
But economists and investors are becoming more concerned about Washington’s growing stagnation.
The White House and top congressional Democrats pushed for an agreement early next week for both the infrastructure bill and the $ 3.5tn budget package. But Joe ManchinThe Sen. West Virginia Democratic senator, who has proven to be a thorn in the side of the administration, told Politico in an interview published Saturday that he saw no rush: “What is needed? No timeline. ”
Democrats and Republicans, meanwhile, are reluctant to raise the debt limit as the federal government warns of a possible shutdown. Democrats insisted that any effort should be bilateral, while Mitch McConnell and Senate Republicans refused to sign unwaveringly, and Democrats insisted on going it alone.
“In the near-term, monetary policy failure represents a significant risk to our economic outlook,” Oxford Economics’ Nancy Vanden Houghton and Gregory Dako warned in a note on Friday.
U.S. Treasury Secretary Janet Yellen called the failure to lift the federal withdrawal limit a “disaster.” On Friday, the Center for Bilateral Policy, a Washington think-tank known for analyzing government cash flows, sharpened its own estimates of possible defaults from Oct. 15 to Nov. 4.
Shy Aqabas, director of economic policy at the Center for Bilateral Policy, said failing to reach a decision within that period would not only risk government critical payments, including military salaries and retirement benefits, but also economic turmoil.
Goldman Sachs’ Wall Street heavyweight Beth Hammack and DE Shaw Group’s Brian Sack, who heads the U.S. government’s advisory group, warned of “significant disruptions” in the t 22tn Treasury market, which serves as the foundation of the global financial system, and new to US creditworthiness. Doubtless.
Fed Chair Jay Powell also cautioned against any speculation that the US Federal Reserve would be able to “fully secure” the financial markets or the economy if no solution is found.