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2024-12-22 Matters of Democracy: Funding & Budget Deal; Inflation Trends
Description
Political Landscape
Government Funding & Budget Deal: A temporary funding bill was passed to avoid a major government shutdown, funding the government at current levels through March 14 of next year.
Musk's Role and Influence Co-President-elect Musk tweeted approval of the final budget deal, saying "The Speaker did a good job here, given the circumstances. It went from a bill that weighed pounds to a bill that weighed ounces."
Musk also came under criticism for endorsing a German political party that panders to neo-Nazis.
The need to address the federal budget again by March 14 sets up another potential political clash.
Economic Landscape
One-year inflation expectations jumped to 2.9%, the highest in six months.
Rising inflation expectations may reinforce rate worries and negatively affect rate-sensitive stocks.