from Renewing America

The Sequester and the Closing Window for a Fiscal Bargain

January 31, 2013

Blog Post
Blog posts represent the views of CFR fellows and staff and not those of CFR, which takes no institutional positions.

The opportunity for Washington to strike a meaningful deal that addresses the nation's long-term fiscal woes is fleeting, writes CFR's Robert Kahn on his blog "Macro and Markets." While the sequester showdown in the coming weeks will provide policymakers with yet another chance for fiscal compromise, both parties have signaled a willingness to let the sweeping budget cuts take effect March 1.

However, Kahn notes, "A deal that addresses longer term debt sustainability and at least partly restores the sequester cuts remains possible, though unlikely, as part of the continuing resolution (CR) to fund the government from March 28.  That’s the real deadline."

Read more on why the window for compromise is closing here.