Sequester Politics, Freddie Mac Earnings, Home on the Range

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FI SPECIAL
March 4, 2013

Sequester Politics, Freddie Mac Earnings, Home on the Range

■ This is the economy under the sequester.

The $85bn of sequester cuts have now officially gone into effect. Two Senate bills - one from either party - aimed at reworking or providing more flexibility for the cuts, failed votes of cloture and are provisionally dead. To sidestep the next hurdle of the fiscal crisis, House Republicans are said to be drafting a bill that will fund the government for the remainder of the fiscal year. On the upside, this is an attempt to remove the threat of a government shutdown before the existing continuing resolution (CR) expires on March 27th. On the downside, it probably means there is virtually no possibility that a compromise exchanging tax reform for entitlement reform will be forthcoming from this Congress.