Budget Talks Will Drag On — What Issues Are Overlooked?
Author: Greg Valliere
May 17, 2023
BOTH SIDES ARE STILL FAR APART on several key issues, including a Republican demand that recipients of federal assistance such as food stamps must get a job. There will be no final budget deal for days or weeks to come, which means a short-term extension still looks likely.
IN THE MEANTIME, WHAT’S GETTING OVERLOOKED?
The U.S. Economy Continues to Grow Moderately: A 3.4% unemployment rate can do wonders for real disposable income, and — surprise !! — the Atlanta Fed GDP Now forecasts 2.6% economic growth this quarter.
Ukraine and Its Emboldened Allies clearly have the upper hand in the war, as Russian missiles have failed to inflict significant damage. The rout is on, perhaps with a focus soon on a potential intermediary — Turkish President Erdogan, who appears headed to re-election.
A Slight Warning in U.S.-China Relations: Extensive talks in the past week between top officials in both countries have lowered the temperature between Washington and Beijing.
Donald Trump’s Clout looks undiminished after candidates he endorsed won in primaries last night. Ron DeSantis has enjoyed a modest surge, but he still looks very much like the underdog.
The 14th Amendment to the Constitution, with its famous sentence that requires the U.S. to pay its debts, is — by default — an increasingly plausible option to deal with the debt ceiling.
The Durham Report, blasting the FBI’s conduct in investigating alleged Russian interference in U.S. elections, will become a cause celebre among conservatives — and it gives Trump a clear victory.
The Congressional hearing on AI yesterday was good theater, but regulations or legislation are not imminent.
Support for fossil fuels continues to surge, as the Biden Administration agrees to reform “permitting” after previously accepting new drilling in Alaska.
Opinion is shifting on legal immigration — check out the front-page article in this morning’s Wall Street Journal on why immigration can boost economic growth, reduce inflation and produce jobs.
A Stunning Washington Post article yesterday reported about a potential Alzheimer’s treatment in a region of Venezuela that has been ravaged by the disease. A thrilling article, worth reading as Washington dithers on the debt ceiling.
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