Budget changes in the US
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U.S. President Joe Biden and congressional Democrats are preparing for pressure to improve their spending, avoid debt, and save their growing hopes of a 2022 run-off election.
Eight months after entering the White House, Biden will have to deal with a number of challenges in the coming weeks to fulfill the necessary promises and prevent a legitimate defeat.
At the front of the house, the White House and the Democratic Democrats split their bid for Biden’s $ 1.2tn bipartisan construction budget and set aside $ 3.5tn in the social security net. Divisions among minority and progressive Democrats due to rising taxes and increasing spending have threatened to disrupt Biden’s plans for the world’s largest economy.
The president at the end of Friday summoned House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer, and promised to “connect” with two top Democrats on the issue over the weekend.
At the same time, time is running out for the financial crisis if no agreement can be reached on Friday for the government to provide funding. Failure to repay the loan may result in a federal closure or, more dangerously, it could result in Treasure spending money and failing to meet the requirements that need to be fixed by the end of October.
In the midst of all of this, Biden has struggled to prevent migrants moving to Haiti on the southern border, the removal of the unrest in Afghanistan – which will take place next week – and the covid-19 crisis. extras, which has undermined confidence in Biden to tackle the epidemic.
“I think that’s a good thing to be. . . frustrated with, you know, ‘I thought this was going to be okay. I think everything is going well ‘, “Biden admitted on Friday in a statement from the White House.
Politicians and lawmakers have been concerned that Biden’s approval would hurt their parties in defending Congress next year. While Democrats were comforted by the success of Ambassador Gavin Newsom in California in commemorating the election this month, there are growing fears that the party could lose the Virginia presidential race in November if political conditions continue to favor them.
“The president’s opinion is popular but people don’t hear about it,” warned Josh Schwerin, a former political ally in the Democratic Republic of Saratoga Strategies, the consulting group.
Schwerin believes that an agreement in Congress on Biden’s fiscal legislation will eventually take place. “There will be discussions until the last minute, and it will be in doubt – until it happens,” he said.
But financiers and investors are becoming increasingly concerned about the rising tide of Washington.
The White House and senior church leaders are seeking an agreement on a new financial law and a $ 3.5tn package early next week. But Joe ManchinThe West Virginia Democratic Senator, who has confirmed that he is a thorn in the side of government officials, told Politico in a reprieve on Saturday that it did not see any urgency, saying: “What’s the matter? There is no time.”
Meanwhile, as the federal government seeks to close down, Democrats and Republicans are in dire straits. Democrats insisted that all efforts should be mutually supportive, while Mitch McConnell and Republican Senators vehemently refused to sign, insisting that Democrats go it alone.
Nancy Vanden Houten and Gregory Daco of Oxford Economics warned Friday that, “in the near future, financial failure represents a serious threat to our economy.”
Janet Yellen, US secretary of state for financial affairs, said she had failed to raise the bar on government “disaster” recovery. On Friday, the Bipartisan Policy Center, a Washington-based tank known for its state-of-the-art financial performance, raised estimates that could be made between October 15 and November 4.
Failure to find an answer so far has not only eroded government funding for military spending but also in terms of employment benefits, says Shai Akabas, director of economics at the Bipartisan Policy Center, as well as economic instability.
Wall Street executives Beth Hammack of Goldman Sachs and Brian Sack of the DE Shaw Group, which heads the US government’s intelligence service, also warned of a “major disruption” to the $ 22tn Treasure market, which forms the basis of the global economic system. the world, as well as doubts about the benefits of debt repayment in the US.
Fed Chairman Jay Powell also tried to warn of any ideas that the US central bank could “completely protect” the financial or financial markets in the event of a crisis.
Additional reports of Lauren Fedor in Washington