We are still assuming that Congress will agree to extend the bulk of the tax cuts due to expire at the end of the year and to postpone most of the automatic spending cuts set to take place early next year. Even though Congress is deeply divided, it is hard to imagine that it will let a sharp tightening in fiscal policy trigger another recession.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services