Economists See (OK-ish) Growth In 2013
Suddenly, the new year is looking a bit brighter — at least in the eyes of most economists and investors.
On Day 1 of 2013, Congress voted to veer away from the "fiscal cliff" by passing a package of provisions that avoided broad tax hikes and big spending cuts. And on Day 2, stock prices shot up.
"There's a lot of relief," said Mark Hopkins, senior economist with Moody's Analytics. "The worst-case scenario has been averted."
Yes, there will be new budget battles in February, after President Obama has had his second inauguration and the 113th Congress has gotten itself organized.
But for now at least, Americans can take some comfort in having more policy certainty about taxes. And that helps businesses with their planning for the new year, according to John Canally, an economist for LPL Financial, an investment-adviser consulting firm.
"People now know for certain what their tax rates will be," Canally said. "Financial markets don't like uncertainty. So today's rally is about people thinking: 'OK, now I know the landscape.' "
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