From Dealbook: One fiscal showdown drew to a close this
week, as the president signed a bill to raise taxes on the wealthiest
Americans. But the sense of relief among businesses was tempered by the
anticipation of political battles to come. Next month, Congress is set to
negotiate over raising the debt ceiling.
“We’re in for another
round of brinkmanship and uncertainty,” said Mark Zandi, the chief economist at
Moody’s Analytics. “I don’t think the economy can really find its footing and
jump to a higher level of growth until we get to the other side of this.”
President Obama has vowed to stay out of the debt ceiling debate, but his
position “sets the stage for a nail-biting standoff that economists warn could
lead to a damaging financial default and doubt from investors about the ability
of the country to pay its obligations,” The New York Times writes. The ratings
agency Moody’s issued a warning on Wednesday, saying a “lack of further deficit
reduction measures could affect the rating negatively,” and that the “need to
raise the debt limit may affect the outcome of future budget negotiations….
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