Fiscal Package

Yes, at the better end of expectations, but still a small net tax increase as of year end. No actual relief for anyone.

And that’s best case. They haven’t actually passed it yet.

Austerity still going strong in the euro zone and the UK.

And China still working on slowing things down to fight inflation.

Oil prices are up which will slow things down some but not generate enough inflation for the Fed to care.

So doesn’t look like anything out there to move the needle on growth or inflation enough to get the Fed to hike any time soon.

Karim writes:

Definitely at the better end of expectations, for both the tax cuts and the unemployment benefits…

(CNN) — President Barack Obama presented congressional Democratic leaders Monday with a proposed deal with Republicans that would extend Bush-era tax cuts for two years and unemployment benefits for 13 months while also setting the estate tax at 35% for two years on inheritances worth more than $5 million, a senior Democratic source told CNN.

The deal also includes a temporary 2% reduction in the payroll tax to replace Obama’s “making work pay” tax credit from the 2009 economic stimulus package for lower-income Americans, the senior Democratic source said.

As currently crafted, the deal would prohibit amendments by either party, according to the source, who spoke on condition of not being identified by name.

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