President Joe Biden and House Republicans have finally agreed on a deal to raise the government’s debt ceiling, including changes to the federal budget in a number of areas. Analysts say the agreement could have only marginal effects on the US economy.
The US House is on track to vote on the deal Wednesday evening. If the bill passes, a Senate vote is likely as soon as Thursday. The debt deal and GDP Economists at Goldman Sachs expect the deal to reduce federal spending by as much as 0.2% of gross domestic product per year over the two years of the deal, compared with their baseline estimate.
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