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Showing posts from April 13, 2011

US lawmakers preparing for next big fight

Business Times - 14 Apr 2011


US lawmakers preparing for next big fight

By LEON HADAR
WASHINGTON CORRESPONDENT

THEY have just signed a deal to cut US$38 billion in federal spending for the rest of this fiscal year and averted a government shutdown - for now, at least. Yet even before the ink is dry on that deal - not to mention the fact that Congress still needs to agree on the federal budget for the next fiscal year - lawmakers in Washington are already gearing up for the next fight.

This one is over whether to raise or not to raise the nation's debt ceiling. Simply put, it would allow the government to borrow more money.

Indeed, with the amount of borrowing the federal government is allowed expected to hit the legal limit as early as next month, President Barack Obama and Republican and Democratic congressional leaders are drawing lines in the sand over this next clash. The outcome could have a major impact on the financial markets as well as on the voters who will be choosing the man…