Congress Mulls $70 Billion Deal for Business Tax Cuts and Child Credit Boost, Worrying Deficit Hawks
• Congressional negotiators discussing $70B deal for business tax breaks and expanded child tax credit • Deal would boost consumer spending but could also worsen inflation, complicating Fed rate cut prospects • Proposal includes research, equipment investment deductions; unsure if fully refundable child credit • Economists say impact likely small - extension through 2025, not large enough to change inflation outlook • Ratings firms warn of unsustainable deficits, but deal shows Congress not ready for austerity era