Economists at Goldman Sachs believe that “if the deal passes Congress by June 5, which means the US avoids a default, the reduction in federal spending would trim US GDP by just 0.1% next year.”
On the US Federal Reserve (Fed) interest rates outlook, they noted Friday that “while we continue to expect the Fed to pause deletion in June, this morning’s stronger-than-expected consumer spending and inflation data and the wide range of views by FOMC participants on the appropriate policy path make this a close call
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