Economics
Republicans Hail Big Spending Cuts That Economists Say Will Have Little Impact on the Economy
Analysts taking the measure of the debt-ceiling pact call it modest.
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US President Joe Biden and House Speaker Kevin McCarthy struck a deal on the federal debt ceiling over the weekend that, if approved by Congress, will avert a disastrous debt default.
Less clear is what the agreement means for an economy that’s more or less shrugged off 5 percentage points’ worth of interest-rate hikes, or what it will do for government borrowing, which many analysts warn is on an unsustainable trajectory.