Statement from Michael Peterson on Fiscal Cliff Agreement
“The agreement to avert the fiscal cliff is a necessary step to protect the fragile economic recovery in the short term. But the agreement obviously does not address the fundamental fiscal challenges that our nation faces.
The goal of any sustainable fiscal policy must be to stabilize the debt as a share of the economy and put it on a downward path. Until we have a plan that stabilizes our federal debt, uncertainty and lack of confidence will continue to be a drag on our current economy and threaten our future prosperity.
The fiscal cliff was a significant missed opportunity to put the nation on a sustainable fiscal path. The President and Congress must continue to work toward a comprehensive fiscal plan that addresses the major drivers of our deficits and stabilizes the debt for the long term.
There is no shortage of fiscal policy options that can stabilize the debt over the long term, while protecting the fragile recovery and the most vulnerable in our society. The sooner we agree on a sustainable bipartisan fiscal plan, the better.”
Further Reading
Continuing Resolutions Are Stopgap Measures — But Now We Average Five a Year
While continuing resolutions can help avoid government shutdowns, they should be rarely used. However, CRs have become the norm.
What Is a Continuing Resolution?
A continuing resolution is a temporary funding measure that Congress can use to fund the federal government for a limited amount of time.
Bond Market Movements Point to Growing Fiscal Risks
As ratings agencies have serially warned, U.S. debt growth is unsustainable, and global investors appear to be weighing the risks of financing U.S. deficits more heavily.