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        Biden’s Agenda: Defining Fall Policy Sprint—

        Infrastructure, Fiscal Cliffs, and America’s Global Role

        Ed Mills, Managing Director, Washington Policy Analyst, Equity Research

        Passing the bipartisan infrastructure deal, negotiating a
        budget reconciliation package, funding the government   We believe the most likely final outcome
        for the next fiscal year, raising the U.S. statutory borrowing   remains passage of an overall economic package
        limit (‘debt ceiling’), and settling key defence and foreign   between $2 trillion and $3 trillion, with tax
                                                               increases and other revenue changes to offset a
        policy decisions top a long list of priorities in DC. Add in   significant portion of the new funding.
        a variety of must-pass deadlines creating a series of fiscal
        cliffs, and we could see a fairly volatile several months in
        DC.                                                 infrastructure and domestic priorities, faces a series of critical tests
                                                            in the coming weeks. The process is likely to be complicated by
        The market impact will depend upon the overall success or failure   political negotiations and various fiscal cliff deadlines. However, we
        of these efforts, with a debt limit being a top near-term concern.   believe the most likely final outcome remains passage of an overall
        Longer term, the market will be closely watching the tax and   economic package between $2 trillion and $3 trillion, with tax
        spending decisions of the reconciliation bill. Overall, we expect   increases and other revenue changes to offset a significant portion
        2021 to end with the finalisation and passage of Biden’s ‘Build Back   of the new funding.
        Better’ infrastructure and domestic agenda before DC transitions   The portion with the greatest clarity and highest probability of
        to a midterm election year that will determine control of the House   passage is the bipartisan infrastructure package that has already
        and Senate for the remainder of Biden’s term.
                                                            cleared the U.S. Senate and includes approximately $550 billion in
                                                            new infrastructure spending. The bipartisan portion broadly targets
        LEADING THE CHARGE: FINALISING AND PASSING          new funding for roads and bridges, rail, transit, ports, airports,
        BIDEN’S ‘BUILD BACK BETTER’ ECONOMIC PACKAGE        water systems, power and grid, electric vehicles, and broadband.
        President Biden’s ‘Build Back Better’ plan, aimed at funding

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