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12 Dec 2014
US fiscal deadline in focus - RBS
FXStreet (Bali) - The deadline day for US lawmakers to pass a budget bill to fund the government has arrived, notes the FX Strategy Team at RBS.
Key Quotes
"The deadline day for US lawmakers to pass a budget bill to fund the government has quietly arrived – a failure to pass a full budget or a short-term extension of the existing budget (also known as a continuing resolution, or CR) by midnight tonight would result in closing of all non-essential government functions. This shut-down debate is separate from the debt limit, though the two are often linked, which will be reinstated in March of next year."
"Understandably, the debate over a government shutdown has not gotten markets’ attention for two core reasons: first, a bipartisan agreement on a new budget that will fund the government through September 2015 was reached this week, and that bill is expected to go to a vote today. Secondly, the lasting repercussions of the 2013 government shutdown were minimal. Because of lingering debate over the specifics of the agreement, the bill may not pass in its current form before tonight’s deadline. A very short-term CR, such as a one-week extension, may be needed to keep the government open while the final details are ironed out, but it appears neither Republicans nor Democrats are interested in shutting down the government."
Key Quotes
"The deadline day for US lawmakers to pass a budget bill to fund the government has quietly arrived – a failure to pass a full budget or a short-term extension of the existing budget (also known as a continuing resolution, or CR) by midnight tonight would result in closing of all non-essential government functions. This shut-down debate is separate from the debt limit, though the two are often linked, which will be reinstated in March of next year."
"Understandably, the debate over a government shutdown has not gotten markets’ attention for two core reasons: first, a bipartisan agreement on a new budget that will fund the government through September 2015 was reached this week, and that bill is expected to go to a vote today. Secondly, the lasting repercussions of the 2013 government shutdown were minimal. Because of lingering debate over the specifics of the agreement, the bill may not pass in its current form before tonight’s deadline. A very short-term CR, such as a one-week extension, may be needed to keep the government open while the final details are ironed out, but it appears neither Republicans nor Democrats are interested in shutting down the government."