The Day at a Glance | July 14 2021

The Top

*Democratic Senators in the Budget Committee approved a bill that would allow Biden´s economic and spending agenda to advance without Republican support.

*IMEF expects the third COVID19 wave in Mexico to have a smaller impact on the country´s economy than the previous ones.

*United Arab Emirates could reach an agreement with OPEC+ to recalculate its production quota; the organization will have a meeting soon.

*J. Powell will talk about the FED´s monetary policy before the Senate.

*The United States Senate will present a bill that would legalize cannabis at a federal level.

Economic environment

Democrats back Biden´s spending plans. Democratic legislators who lead the Senate Budget Committee passed a 3.5 trillion dollar spending deal in order to meet President Biden´s education and welfare investment projects. The bill will be discussed in the following weeks and could be approved under a budget reconciliation process, which would allow Democrats to side-step Republican support. Regarding the infrastructure investment program, legislators will seek to approve – in a separate process – a bipartisan infrastructure investment agreement worth 600 million dollars, which would take the budget to 4.1 trillion. The portion destined to education and welfare (3.5 billion) considers, other than the President´s proposals, the expansion of services granted by Medicare and legislators have assured that the agreement includes enough for the total amount of spending, even though no details have been revealed. According to surveys, 64% of the US population would agree to an increase in taxes for high-income individuals in order to fund the program, as Biden has proposed. If these projects are approved through both routes, legislators would be giving the green light to the proposals made by the President at the beginning of the year.