Analysis: Your wallet is on the line: Washington has to get this week right

Sep 27, 2021

"This policy migraine has several weeks to go, as Republican's fight Democrats and Democrats fight other Democrats," says Greg Valliere, chief US strategist for AGF Investments.

And some progressives may balk if moderate Democrats succeed in watering down the corporate tax hikes or the size of the package.

Debt ceiling

Republicans are so opposed to Democrats' social agenda, they vow not to help raise the debt ceiling.

Pat Toomey said Democrats are in the midst of "a very damaging spending spree on a scale that we have never seen, and they want us to come along and authorize the borrowing to help pay for it." He vowed the ceiling would need to be raised by Democrats alone.

It's the latest political game with America's credit card limit.

"Debt default is a serious issue," says Valliere, but Wall Street players so far are betting the debt ceiling will be resolved.

"It will get raised eventually with Democrats forced to take most of the ownership," Valliere says,

Infrastructure bill

But there is bipartisan support for $1 trillion infrastructure bill.