Congress is back at it again. Disregarding lessons from previous fiscal fights, each party seems to be digging in and ramping up the rhetoric in advance of several contentious fiscal and economic policy events, including a possible government shutdown, a debt ceiling increase and a probable selection of a new Fed chairman.
-Libby Cantrill, executive vice president, PIMCO
-Josh Thimons, managing director and portfolio manager, PIMCO
- Congress seems to be digging in and ramping up the rhetoric in advance of a possible government shutdown, a debt ceiling increase and a probable selection of a new Fed chair.
- We think it is likely policymakers will agree to a short-term deal to fund the government and avert a shutdown, and also cobble together a resolution on the debt ceiling, although neither is likely until the last minute.
- The Fed chair debate will likely continue to sway markets over the next few months, leading to greater uncertainty and greater market volatility.