January 2, 2013
Late last night, the U.S. House of Representatives voted 257 to 167 to approve the fiscal cliff legislation drafted and passed in the Senate earlier in the day. Although the agreement doesn’t address all issues, particularly many relating to spending cuts, the key provisions of the “mini” deal include:
While the debt ceiling was technically reached yesterday, the Treasury Department is taking measures to accommodate federal spending through mid- to late February. Since an increase in the debt ceiling was not included in the “mini” deal passed yesterday, Congress and President Barack Obama will now restart negotiations on a “grand bargain” to address the debt ceiling, and will likely need to include some tax reform, spending cuts and entitlement reform provisions.
Check back here regularly for TIAA-CREF’s analysis of news on these economic developments and their impact on you, as well as our guidance on investing in a turbulent environment.
The information provided herein is as of January 2, 2013.
The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons.