Budget Boost

Besides lifting the debt ceiling until at least 7/21 and avoiding a government shutdown till 10/1/21, the recently agreed upon two-year budget deal boosts FY2020 discretionary spending by a total of $49 billion compared to FY2019. Defense spending will rise by $22 billion to $738 billion; non-defense spending will rise by $27 billion, to $632 billion. This should boost FY2020 GDP growth from 2% to 2.2%; a useful short-term boost.