Government shutdown: Could the U.S. implement austerity measures?
10/05/2023 04:04
Congress is facing yet another potential government shutdown with a new deadline of November 17. Only this time, lawmakers are under further pressure to elect a new Speaker of the House while also contending with a multitude of factors, such as the Fed's higher for longer interest rates, the 2024 election, and the end of benefits from 2017 tax cuts. Jeannette Lowe, Strategas Securities Managing Director — Policy Research, joins Yahoo Finance to explain the austerity measures — or economic policies focused on relieving budget deficits — Congress may pursue to deal with these circumstances. "What we are now seeing is net interest costs above 14% of tax revenues," Lowe explains. "Historically that has been the threshold that once you reach above that level, that is where the U.S. starts to move from a period of stimulus to a period of austerity." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Congress is facing yet another potential government shutdown with a new deadline of November 17. Only this time, lawmakers are under further pressure to elect a new Speaker of the House while also contending with a multitude of factors, such as the Fed's higher for longer interest rates, the 2024 election, and the end of benefits from 2017 tax cuts.
Jeannette Lowe, Strategas Securities Managing Director — Policy Research, joins Yahoo Finance to explain the austerity measures — or economic policies focused on relieving budget deficits — Congress may pursue to deal with these circumstances.
"What we are now seeing is net interest costs above 14% of tax revenues," Lowe explains. "Historically that has been the threshold that once you reach above that level, that is where the U.S. starts to move from a period of stimulus to a period of austerity."
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.