Fiscal Cliff Looming?
From a Marketwatch article this morning ...
https://www.marketwatch.com/story/treasury-holds-line-on-auction-sizes-says-extraordinary-measures-around-debt-limit-will-be-exhausted-sometime-in-second-half-of-year-2019-05-01?mod=mw_latestnews
Big picture: The government is expected to run a deficit close to $1 trillion for this fiscal year. Economists said pressure on Treasury to increase auction sizes was due in part to the Federal Reserves decision to end its program to slowly shrink its balance sheet
In February 2018, Congress suspended the debt ceiling. That suspension ended on March 1. Since then, the department has been using extraordinary measures to keep below the debt limit. There is concern that Congress will be unable to pass a debt limit measure as lawmakers have not even been unable to complete work on a politically popular disaster relief measure. The Washington Post reported that administration officials are working behind the scenes for a quick resolution to the debt ceiling impasse.
The government will also need to be funded after the start of the new fiscal year on Oct. 1. There are worries about the potential for another government shutdown as President Donald Trump and House Democrats duel about competing priorities.
In addition, a fiscal cliff is looming at the end of the year of no agreement on spending levels is reached.
Who would have thought?
🤦🏽♀️