January 15, 2024
United States:
US Economy Set for Another Cash Boost If Congress Backs Tax Deal
The US economy is set for an unexpected fiscal boost if lawmakers back a potential deal for $70 billion worth of tax breaks for businesses and families.
Congressional negotiators are locked in talks over renewing expired business tax breaks and boosting the child tax credit, evenly split between both. The proposal will need to pass through a Congress that is deeply divided over the nation’s fiscal trajectory, as some Republican lawmakers push for deep spending cuts as a condition for averting another government shutdown on Jan. 19 and Feb. 2, when temporary funding expires.
Europe:
Germany Narrowly Escapes Recession But Outlook Remains Tough
Germany continued to dodge a recession in the wake of the energy crisis, despite shrinking in 2023 with this year set to bring only a meager rebound.
Gross domestic product fell 0.3% between October and December, according to a preliminary estimate Monday. But with the previous three months revised up to 0% from -0.1%, Europe’s largest economy avoided two straight quarters of contraction.
Asia:
China Holds Key Rate as Economy Prepares for ‘Difficult Year’
China’s central bank held a key interest rate as concerns about yuan volatility and the still-distant prospect of Federal Reserve easing limit the room policymakers have to support the economy.
The People’s Bank of China maintained the rate on its one-year policy loans on Monday, disappointing investors expecting the first trim since August. While the central bank pumped more cash into the system to meet demand for funding, another round of weak credit numbers on Friday had bolstered expectations for bolder steps.
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