Another rather busy day on the US stock market. All the key US stock indices have cheered up a little in the last couple of days and started new growth. However, the overall movement remains corrective. In our articles on the foreign exchange market, we have already raised the question of how the US dollar can grow with such a fundamental background from overseas, as it is now? Recall that already on October 18, and the Treasury may run out of money to make payments. Janet Yellen's office cannot place new bonds because of the government debt limit, which was already reached a couple of weeks ago. Thus, debates have been going on in Congress for several weeks regarding a possible increase in the national debt limit or its "freezing" for some time. The situation is as follows: Democrats can decide to freeze the limit on their own. Therefore, there is no problem, and the Senate will have time to vote "for" this bill in any possible scenario of votes.
Meanwhile, US President Joe Biden made a speech that touched on both the topic of the borrowing limit and the "infrastructure package." He began his speech by warning about the possible loss of world domination and the title of the world's largest economy by the United States of America if the country does not continue to invest in its economy, infrastructure, and citizens. He also noted that the States had been in first place for a long time by a large margin, but then "something happened," and the gap began to narrow. From Biden's point of view, this happened because "we stopped investing in ourselves." "Our infrastructure and social packages are the keys to the future success and victories of the United States in the international arena," Biden said, speaking in Michigan. At the same time, the US president admitted that the size of both packages could be reduced since it is necessary to adopt a "bipartisan agreement," which means taking into account the demands of the Republicans. It is also worth noting that at the moment, members of Congress and senators have not yet come to a common opinion on the final form of the bill. The debate continues, squabbles between Democrats and Republicans continue. However, Joe Biden on Wednesday said that the trillions of dollars embedded in both bills would be spent for ten years or more, and taxes will fund both packages for corporations and taxes for wealthy Americans. Biden also noted that the "social package" may decrease in size from the current $ 3.5 trillion, but the Democrats will do everything necessary for it to be adopted.
Recall that the issue of the US debt limit should be resolved in the near future because otherwise, the US may declare a "technical default" on October 18.The material has been provided by InstaForex Company - www.instaforex.com