It would be an understatement to say that there is ALOT going on in Washington, across the nation and around the world.
This week, headline reports have been dissecting Washington’s proposed spending package that could be linked to the national budget, known as reconciliation.
What is budget reconciliation? When Congress proposes a reconciliation bill, it means a simple majority is required to clear the Senate floor, rather than the usual 60 votes required to pass a bill.
Democrats initially proposed a $3.5 trillion spending package, but this number made several Democratic lawmakers uneasy, eliminating the potential for reconciliation.
President Biden has acknowledged that the new proposed bill will likely come in somewhere between $1.6 and $2.5 trillion.
Members of Congress are now contemplating the viability of several programs including free community college and child care programs, to name a few.
As we move through October, this will be an important development to track as a bill this size could add fuel to the inflation fire. Federal Reserve officials are likely paying close attention to Washington and the potential spending bill outcomes.