Late on Thursday night, the U.S. Senate followed the House of Representatives in passing the deal brokered by the Biden administration and the Speaker of the House, Kevin McCarthy, and it will now go to the desk of the president to be signed, avoiding a potential global financial and economic crisis. As we argued in our latest Thoughts on the Market (TOTM), the deal will have limited effects on economic activity over the next two years from reductions in government expenditures while helping to reduce economic and financial risks of default for, at least, two and a half years, which is not a small feat. Furthermore, ... (full story)