U.S. lawmakers have a long to-do list for the coming weeks — and financial markets could get rattled by the ensuing drama, analysts are warning.
The autumn action will help determine President Joe Biden’s legacy, along with whether Republicans can take control of the House or Senate in next year’s midterm elections, according to James Lucier, managing director at Capital Alpha Partners. “The debt ceiling always gets raised, but this time will be nerve-wracking, amid threats of a government shut-down,” he added. “Can massive infrastructure bills win passage in this climate? A major haircut will be required, which could force angry House progressives to oppose infrastructure spending rather than accept pared-back bills.”
“Major unresolved points of contention include capital gains, SALT, and whether to expand Medicare as advocated by Sen. Bernie Sanders or shore up Obamacare as supported by House Speaker Nancy Pelosi ,” Salisbury added. “What the president’s most focused on are both steps he has proposed to lower costs for the American people but also ensuring that corporations and wealthy individuals are asked to pay more. Both are important to him, and we’ll see how the negotiations pan out,” she added.