Advertisement

HindustanTimes Fri,18 Apr 2014

US surmounts fiscal cliff for now, but hurdles remain

Reuters  Washington, January 02, 2013
First Published: 20:19 IST(2/1/2013) | Last Updated: 22:11 IST(2/1/2013)

The US averted economic calamity late on Tuesday when lawmakers approved a deal to prevent huge tax hikes and spending cuts that would have pushed the world’s largest economy into recession.

Advertisement

Financial markets have been rattled by the months of budget brinkmanship. The crisis ended when dozens of Republicans in the House of Representatives buckled and backed tax hikes approved by the Democratic-controlled Senate.

The vote averted immediate pain like tax hikes for almost all US households, but did nothing to resolve other political showdowns on the budget that loom in coming months. Spending cuts of $109 billion in military and domestic programmes were only delayed for two months. http://www.hindustantimes.com/Images/Popup/2013/1/03_01_biz2.jpg

Asian stocks hit a five-month high and the dollar fell as markets welcomed the news. European markets followed their Asian counterparts and rallied on the news  while futures markets pointed to Wall Street doing the same.

Advertisement
more from Business

Rajat Gupta to surrender on June 17 in insider trading case

Gupta was convicted in June 2012 on securities fraud and conspiracy charges for having fed tips, from Goldman board meetings in the second half of 2008, to longtime friend Raj Rajaratnam, founder of the Galleon Group hedge fund firm.
markets
Advertisement
Most Popular
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved