Stock markets pick up steam
Updated: Wednesday, February 20 2013, 08:38 AM EST
WASHINGTON, D.C. (NEWSCHANNEL 3) – World stock markets picked up steam Wednesday morning, after the Dow Jones closed at its highest level in years on Tuesday.
However, stocks could tumble again if the government does not reach a deal to avoid sequestration.
If nothing is done, the U.S. will face steep spending cuts beginning March 1st, which many predict will hurt our economy.
The sequester would automatically cut 85 billion dollars in spending. It was designed to be so severe, it would force lawmakers to reach a deal.
The White House wants a plan with smaller spending cuts and more revenue from taxes.
Republicans say the government is already too bloated and higher taxes should not be part of this equation.
So now, with no deal in sight, the President is pushing for a short-term fix, to allow more time to reach a compromise.
"There's a smarter way to do this, to reduce our deficits, without harming our economy,” President Obama said Tuesday. “But Congress has to act."
Lawmakers will have just a few days to stop the automatic cuts, when they return from recess next week.