The Day at a Glance | December 18 2020

The Top

· No developments regarding a fiscal agreement in the US.

· Banxico keeps interest rate unchanged in a divided decision.

Economic environment

US Congress has not been able to close negotiations regarding a new fiscal package and government funding, which is why it`s possible activities and public services could shut down during the weekend. Recent comments made by legislators suggest that they need more time to negotiate and some of them have opposed approving a temporary law that would allow government funding for a few more days. According to Senator John Thune, several legislators are against some details stipulated in the stimulus package and could not approve a temporary extension regarding government funding. Tonight, at midnight, funds available for public services will expire. The lack of an agreement brings up an important risk that includes a government shutdown this weekend and delays a fiscal stimulus even more. The lack of government aid amidst the pandemic, which has been delayed for three months, puts American households and businesses at risks in light of the new COVID-19 wave.