Debt Ceiling Deal and Spending Cuts: Potential Risks for US Economy.
TL;DR Summary
The debt deal agreed upon by President Biden and Speaker Kevin McCarthy is less restrictive than the one cut in 2011, and the economy is in a better position to absorb the modest budget cuts. Some economists say the economy could use a mild dose of fiscal austerity right now to help lower a persistently high inflation rate. The newfound spending restraint might even help the economy. The deal would reduce federal spending by about $55 billion next year, compared with Congressional Budget Office forecasts, and by another $81 billion in 2025.
- Why Spending Cuts Likely Won't Shake the Economy The New York Times
- Austan Goolsbee says debt ceiling deal coming in the 11th hour is a "little dangerous" Face the Nation
- Debt Deal Adds Brake on US Economy Already at Risk of Recession Yahoo Finance
- Stock, bonds, or cash? Here’s investors’ best playbook for the debt ceiling, Fed policy and recession risks MarketWatch
- Why the U.S. Debt-Ceiling Deal Could Have Trouble in Congress msnNOW
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