On The Money: Wall Street Focuses On Georgia Runoffs | Seven States sue regulator over “real lender” rule on interest rates | 2021 deficit projected to reach $ 2.3 trillion

0

Happy Tuesday and welcome to On The Money. I’m Sylvan Lane, and here’s your evening guide to everything to do with your bills, your bank account, and your bottom line.

Do you see something that I missed? Let me know at [email protected] or tweet me @SylvanLane. And if you like your newsletter, you can sign up for it here: http://bit.ly/1NxxW2N.

Write to us with tips, suggestions and news: [email protected], [email protected] and [email protected]. Follow us on twitter: @SylvanLane, @NJagoda and @NivElis.

THE BIG DEAL — Wall Street Focuses on Georgia Stormwater: Wall Street traders are closely watching Tuesday’s Georgia runoff election, which determine control of the Senate and the overall balance of power in Washington for the next two years.

  • While the two Senate races are considered draws, Republicans have an advantage in that they only need to win one of the two elections to maintain control of the Senate.
  • These odds have led the markets to rate a GOP majority in the Senate for the next two years.
  • But the prospect of a Democratic sweep in Georgia could have major implications for markets, affecting everything from corporate tax rates and regulations to more coronavirus relief.

“I would say if the Republicans win one or more seats, nothing changes,” said Michael Cembalest, president of market and investment strategy at JP Morgan Asset & Wealth Management. “If Democrats win, the markets will be leading the way until they see what kinds of political choices this leads to.” Niv Elis hill tell us why here.

A slim majority would embarrass Democrats: Even if Democrats win, their extraordinarily narrow margins mean significant, sweeping changes that rock markets over the next two years are unlikely.

Some tax and spending laws can be passed through a process called budget reconciliation that only requires a simple majority, and democratic scrutiny would pave the way for most cabinet candidates Biden, but most major laws need 60 votes to pass the Senate.

Implications for relief from COVID-19: Narrow Democratic majorities would also pose challenges for economic priorities, such as another round of COVID-19 relief.

Read more: Shares rise as Wall Street watches Georgia Senate races

LEAD THE DAY

Seven states are suing the regulator over the “real lender” rule on interest rates: Seven states sued the Office of the Comptroller of the Currency (OCC) on Tuesday for delete a rule they claim they overstep the authority of the regulator and would allow lenders to evade maximum state interest rates.

In a complaint Filed Tuesday, seven Democratic attorneys general asked the U.S. District Court for the Southern District of New York to rule the OCC’s “real lender” rule illegal, echoing concerns expressed by fair lending advocates and some regulators. ‘State.

“This rule would be wrong at any time, but the Trump administration’s attempts to free predatory lenders on unsuspecting New Yorkers in the midst of a pandemic are cruel and heartless,” James said in a statement.

I break it down here.

2021 deficit on track to reach $ 2.3 trillion: Watchdog: The deficit for 2021 is already on track reach $ 2.3 trillion, or 10.4% of gross domestic product, higher than any year except 2020, according to estimates by the Committee for a Responsible Federal Budget, a budget watchdog group.

Last year’s deficit hit a record high of $ 3.1 trillion, more than double the previous record high of $ 1.4 trillion in the midst of the Great Recession.

“It would be higher than at any time in recorded history outside of World War II,” the group noted.

The main driver of the growing deficit has been the pandemic, which necessitated a huge increase in public spending just as the economy collapsed. Niv guides us the numbers here.

GOOD TO KNOW

TIPS

  • Amazon announced the purchase on Tuesday of 11 jets that the online sales giant will add to its delivery fleet.
  • A Milan appeals court on Tuesday ordered tech giant Facebook to pay 3.8 million euros ($ 4.7 million) for copy an application made by an Italian company.

Leave A Reply

Your email address will not be published.