The Day at a Glance | September 26 2023

*Republicans are pressing Congress for deeper spending cuts despite the risks of a partial government shutdown; time to reach a funding agreement is running out. 

*Credit rating agency Moody’s warns the US government that a government shutdown would be detrimental to the country’s credit rating.

*US housing prices accelerated on an annual basis for the second consecutive month in July.

*This morning, the Conference Board will release September´s Consumer Confidence Index, which, according to the economists’ consensus, is expected to set at 105.5 points (106.1 prev.).

*Inflation in Brazil is increasing in line with estimates (5.0% y/y); the Central Bank of Brazil stated that it will maintain its pace of interest rate cuts.

Economic environment

Republicans are pushing for deeper spending cuts in US Congress despite the risks of a partial government shutdown. The US House of Representatives – controlled by Republicans – is seeking to pass significant spending cuts, which are unlikely to go anywhere and could lead to a partial government shutdown. House leader Kevin McCarthy had previously agreed to spending with Democratic President Joe Biden to avoid this, but some members of his party are pushing for deeper cuts. If Congress doesn’t fund the new fiscal year beginning on October 1st, hundreds of thousands of federal employees could be furloughed, and various services would come to a halt. McCarthy has struggled to gain support for a temporary spending extension, and instead, the House is considering bills that include abortion restrictions, the elimination of climate initiatives, and the resumption of the border wall with Mexico. These bills are highly likely to be rejected by the Senate and vetoed by Biden. Meanwhile, the Senate is working on a short-term spending measure that could force McCarthy to rely on Democratic votes to avoid a shutdown. Former President Trump has urged Republicans to force a shutdown, but the Department of Justice assures that criminal prosecutions will continue in the event of a shutdown.

Facebook Comments