Key Takeaways

  • After passing a convoluted road to raise the debt ceiling Congress will act this week.
  • Debt ceiling increase should remove risk until after 2022 elections
  • Senate Democrats stuck on Biden’s Build Back Better (BBB) with Machin still not on board.
  • Will expiring Child Tax Credit be engine that moves BBB?  Will inflation rise delay BBB past year end?
  • Chairman Powell hearings unlikely this year.

The big event in DC this week will be passing legislation to increase the debt ceiling.  While no final decision has been made on the exact figure numbers ranging up to $3T have been discussed.  The goal is to increase the ceiling high enough that it will not need to be increased prior to the 2022 election; and hopefully by taking the action 11 months ahead of the midterms it will take some of the sting out of the issue in the House and Senate elections for incumbent Democrats.

Last week Congress approved a convoluted strategy that will allow the vote this week to increase the ceiling without any Republicans voting to approve the increase.  Legislative magic created by Senate Leaders Schumer and McConnell.

Why would Mitch change his position and give Democrats a way to increase the debt ceiling that needed a helping hand from Senate Republica...

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