Can the castrated expenditure plan still be useful? Hard to say!
On October 24, the President of the US House of Representatives Pelosi said that the Democratic Party of the US Congress has accelerated negotiations in the hope that a compromise can be reached as soon as possible on the trillion-dollar spending bill. Because time has become tighter and tighter, there are still many important issues surrounding the U.S. economy that need to be advanced, the most important of which is the Fed's reduction in debt purchases.
However, due to the differences and contradictions between the radicals and moderates within the Democratic Party, the advancement of the spending bill has been frequently blocked, especially the traditional fossil energy group represented by Senator Manchin and a clean power performance plan in the spending bill. Intense, resulting in almost no possibility of passing the original planned spending plan of US$3.5 trillion, coupled with numerous blockades from the Republican Party, making Biden had to compromise to significantly shrink the spending plan. Judging from the latest news, in order to reconcile the contradictions between the parties, the expenditure plan has to be reduced from 3.5 trillion US dollars to 2 trillion US dollars or less. With the deletion and modification of some key contents of the expenditure plan, please Rossi reappeared and said that he would lay the foundation for the legislation of the spending bill as soon as this week.
Judging from Pelosi’s statement, it seems that the expenditure plan has been intent, so it is said that there is a legislative basis. However, how effective such a castrated expenditure plan will ultimately achieve is currently unknown; but in everyone’s minds We all know that if it is the full version of the expenditure plan, the possibility of the US economy recovering is relatively high, but this castrated version of the expenditure plan is certainly not as effective as the full version, but it also has a role in the recovery of the US economy, so it is also It cannot be denied directly, but should be judged based on the actual situation.
Fed Chairman Powell appeared to speak on Friday night and made some hawkish statements. The market reacted because of this. Many people were wiped out at that time. Is it because the US dollar turned to rise because of Powell’s speech. However, what is interesting is that this impetuous momentum did not last long. After Powell finished his speech, he directly acknowledged the counsel. The dollar index price fell again, causing the dollar daily line to finally close to a small Yinxian, and a small black line was created. The Dragon Quotes, because at the end, the market is still running on the original trajectory, and nothing has changed.
