Big Picture: U.S. Economics Preview: Policy Negotiations to Set Tone

With the election past, investors and policy makers are now focused on the possible fiscal shock set to take place in early 2013 due to scheduled legislative changes.

While the near-term risks to the U.S. economic outlook are generally well understood by investors, they are difficult to disentangle from the longer-term growth picture due to an unsustainable fiscal path and debt dynamics that will probably drive the outcome of policy negotiations.

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