The Debt Ceiling

Unless you have been living under a rock, or in a place without any sort of news whatsoever, I am sure you have heard about the debt ceiling. And finally, after months of both sides of the political aisle playing games in the media, we appear to have a compromise between President Biden and House Speaker Kevin McCarthy.

The deal is for a two-year budget that will limit 2024, and cap 2025 spending increases at 1%. This agreement means the debt limit will be suspended until January 2025 after the next presidential election.

Wall Street ended up trading lower on Tuesday as news broke that the deal was headed to Congress. The S&P remained flat at 4,205.52. The Dow Jones dropped 50.56 points.

The House is expected to vote on the deal on Wednesday. Once we have seen the full bill, you can expect a blog highlighting some of the changes.