US politics update. With market implications. Via Reuters:

  • Democratic U.S. Senator Kyrsten Sinema said on Thursday she agreed to "move forward" on a $430 billion drug pricing, energy and tax bill, subject to a Senate arbiter's approval of the bill, which Democrats intend to pass over Republican objections.
  • The bill known as the Inflation Reduction Act, introduced last week by Schumer and Democratic Senator Joe Manchin, represents a key priority for Democrats and President Joe Biden
  • With the 100-seat Senate split 50-50, Democrats plan to pass the bill without Republican support through a parliamentary process known as reconciliation.
  • Senate Majority Leader Chuck Schumer said earlier on Thursday the chamber would convene on Saturday to vote on a motion to proceed and then begin debate on the bill.

Via other sources:

  • bill will now include a new excise tax on stock buybacks that will generate more revenue than the dropped carried interest provision did
  • The deficit reduction figure will remain at $300 billion


US equities are liking the news. SPX update:

spx 05 August 2022 chart