The debt limit agreement ICYMI:
And, responses.follow-ups:
Goldman Sachs assesses that if the deal passes Congress by June 5, which means the US avoids a default, the reduction in federal spending would trim US GDP by just 0.1% next year.
Other analysts, Moody’s for example, say the timing of the marginal fiscal restraint is not great given heightened recession risks, “But it is manageable.”
- would reduce US employment by around120,000 jobs in late 2024
- unemployment rate up by 0.1%