Little noticed amid dire warnings from Wall Street, and increasing cacophony on Capitol Hill, the investment giant Goldman Sachs issued a report late last week concluding that even if Congress passes a relatively small budget deal when they raise the debt limit, it will still be a promising indication to investors that the U.S. fiscal trajectory will improve over the coming decade.“[T]he hypothetical $1.7trn agreement we sketch out would meaningfully reduce the debt-to-GDP ratio over the next ten years. The debt reduction would reduce interest expense by more than $300bn, for a total of around $2trn in deficit reduction,” reads the report passed my way by a Wall Street source.
This is a companion discussion topic for the original entry at https://talkingpointsmemo.com/?p=109448