Infrastructure Bills Are on Life Support — But Talks Halt for Congressional Baseball Game
Author: Greg Valliere
September 30, 2021
Infrastructure Bills Are on Life Support —
But Talks Halt for Congressional Baseball Game
September 30, 2021
YOU CAN’T MAKE THIS UP: With President Biden’s agenda in jeopardy and a default crisis fast approaching, many of the key players stopped negotiating last night and played in the Congressional baseball game.
THE TONE-DEAF LAWMAKERS will get back to work today, probably passing a short-term budget extension lasting through Dec. 3 to keep the government open. There’s an 80% chance that a shutdown will be avoided before the new fiscal year begins at 12:01 tomorrow morning.
THE BIG DRAMA TODAY ON CAPITOL HILL will be in the House, where Nancy Pelosi apparently doesn’t have the votes to pass Biden’s two infrastructure bills. Her own members — the progressive left — would rather kill the $1 trillion measure if it’s not combined with the bloated $3.5 billion social spending package.
WILL PELOSI EVEN BRING THE BILLS TO A VOTE? She’s famous for not allowing a vote on measures that are destined to fail. These two bills may have gotten a death blow yesterday from — who else? — Joe Manchin, the erratic West Virginia moderate.
THE BIDEN PLANS ARE “FISCAL INSANITY,” Manchin declared yesterday, infuriating virtually all Democrats in Congress. Manchin demanded fundamental tax reform at this late stage, and he still refused to reveal his top-line spending goal for the big bill. Is it under $2 trillion? No one knows, and many of his critics think Manchin’s real number is zero.
MEANWHILE, THERE WAS NO PROGRESS YESTERDAY on a debt ceiling deal. Now that Janet Yellen has set a default target date of Oct. 18, Congress has three weeks to dither until that deadline arrives. Default still looks unlikely; the Federal Reserve has three weeks to prepare emergency measures.
THE DYSFUNCTION IN CONGRESS IS SO ACUTE that it’s possible the Fed will have to wait for fiscal clarity before beginning its tapering of asset purchases. There will be enormous pressure on Jerome Powell, who suddenly isn’t a shoo-in for a second term as chairman.
The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
For further information, please visit AGF.com.
©2023 AGF Management Limited. All rights reserved.