Bundstag vote is underway… and it passes

The Bundestag is currently voting on Chancellor Merz’s fiscal reform, with results …well it has passed.

The vote was 513 in favor and 207 against. The vote needed 489 votes to pass constitutional reform.

The reform debt policies would allow higher defense spending and create a €500 billion ($548 billion) infrastructure and climate fund. The proposal, backed by the CDU-CSU and SPD, seeks to exempt defense and infrastructure-related loans from the debt brake, while also granting more flexibility to Germany’s states. A two-thirds majority is required for the package to pass, and the Bundesrat must also approve it on Friday.

Meanwhile Fitch is saying:

• Pressure could arise under Germany’s AAA rating in a long-term if spending not offset by consolidation or last improvement in growth.

The German DAX is trading up 0.69% at 23,315. The high price reached 23,476 earlier today.

In other “to come” news.

• Pres. Trump and Russians Putin or speaking currently on a cease-fire agreement.
• Nvidia’s GTC Conference with CEO Huang to speak later today at 1 PM ET.

The US Fed will announce interest-rate decision tomorrow at 2 PM. Market expectations are focused on the Fed’s perception of rates going forward (the dot plot) and the expectations for GDP unemployment and inflation and how all of that will be impacted by the Pres. Trump policies (which are all over the place).

Adam posted on the most recent tariff thoughts. It is quite chaotic which makes policy decisions by the Fed even more difficult.

This article was written by Greg Michalowski at www.forexlive.com.