Home Markets An Infrastructure Spending Bust Might Boost Markets. Here’s Why.

An Infrastructure Spending Bust Might Boost Markets. Here’s Why.

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Investors have a lot to worry about lately, with Covid-19 variants threatening to undermine the global economic recovery, persistent labor and supply shortages pushing prices higher, and uncertainty over monetary policy weighing on sentiment.

There is another emerging risk—depending on how you look at it—that many are missing.

President Biden has proposed roughly $4 trillion in new infrastructure spending, but Democrats are far from an intraparty agreement. Sen. Bernie Sanders, a Vermont independent who caucuses with Democrats, is floating $6 trillion in infrastructure spending, House progressives are calling for $6 trillion to $10 trillion, and Sen. Joe Manchin (D., W.Va.) is suggesting he would support around $3 trillion in such spending.

That disharmony comes as Democrats stare down an important deadline at the end of the month: If they don’t pass a budget resolution before Congress goes into recess on July 30, the risk increases that…

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