US: budget deal & Volcker rule
It was an important day for the US economy: the Republican and Democratic parties reached a deal on a 2014/15 budget draft. The new budget is designed to ensure the stability of fiscal policy for the next 2 years. According to the document , the taxes in the US won't rise, but the deficit will be reduced.
Unfortunately, it is still too early to say the US budget problems are over. In the coming days, the draft will be sent for approval of the House of Representatives and the Senate. The process may not be as fast as we would like to see it. Republican Senator Marco Rubio has already said that the deal "cancels the past efforts to reduce costs, rather than to take measures to combat escalating costs." In addition, the problem of the debt ceiling will return into the limelight in early 2014.
In addition to the budget deal, it is worth noting the adoption of the final version of the "Volcker rule". US banks will no longer be able to make big trading bets with their own money what was a hugely profitable business for Wall Street before the credit crisis. After the introduction of new legislation in 2015, profit of the largest US banks may fall significantly.