While the stock market is focused on inflation and economics, it could be politics that blindside investors and traders over the coming months.
West Virginia Senator Joe Manchin dropped a bomb on the Biden administration when he said he would not support the $1.9 trillion Build Back Better legislation. With a 50-50 split in the Senate, a no vote from a Democrat was a death knell for the pending program. The senator cited rising inflation as a reason why the US cannot afford to spend another almost $2 trillion after the cost of the legislation would not be covered by tax hikes.
While Republicans cheered, the move angered many Democrats as the legislation is the cornerstone of the President’s campaign pledges. As we move forward into 2022, the Build Back Better legislation has suffered a blow, but it could yet make a comeback.
The US debt ceiling or debt limit is a legislative limit on the national debt that the US Treasury can incur. October 18 was the line in the sand for the US debt. The debt ceiling limits how much money the federal government may pay on the debt previously borrowed. Without Congress increasing the level, the government risks a default, weighing on the world’s faith in the US and likely causing a credit downgrade.
Almost instantly after most abortions were banned in Texas, Democrats were decrying the new law as unconstitutional, an assault on women’s health that must be challenged. But the reaction from many Republicans on the other side hasn’t been nearly as emphatic.
Though some in the GOP are celebrating the moment as a long-sought win for the anti-abortion rights movement, others are minimizing the meaning of the Supreme Court’s Wednesday midnight decision that allowed the bill to take effect. A few are even slamming the court and the law.
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