The Senate and the House of Representatives have resumed their work, but it is unlikely that they will accomplish much before the Christmas break. As a result, January is expected to be a busy month.
Notably, Congress passed a short-term budget package before the Thanksgiving holiday to prevent a shutdown. However, this means that legislators have until January 19 to pass certain budgets (Transportation and Housing and Urban Development), and until February 2nd to pass others (Defense and Health and Human Services).
Congress will leave Washington, D.C. before December 25th and return on January 9th, leaving only a few days before the first deadline. House Speaker Mike Johnson has made it clear that there will be no more short-term packages.
In addition to the regulator spending bills, Congress is expected to address funding proposals for Israel, Ukraine, and the southern U.S. border.
If this seems like a lot of January headline risk, you may be correct. Therefore, it is important to be prepared for some volatility in the weeks ahead. While we can hope for the best, historical precedent suggests that Congress may take its time in addressing the numerous issues at hand.
If you have questions about these ongoing congressional matters or how increased headline risk could impact your portfolio, please don’t hesitate to contact an advisor today. Our team is here to help.
1FundStrat.com, November 20, 2023