There’s no love lost between political parties this Valentine's Day as lawmakers edge closer to the automatic cuts in federal spending referred to as sequestration.
Those reductions, an agreed-upon provision formulated during previous debt ceiling negotiations, are set to kick in March 1 if no resolution is reached, and they would carve $85 billion out of the government’s budget in the next seven months. President Obama and Democrats in the Senate are expected to unveil legislation Thursday to avoid sequestration. But the proposal, which reportedly includes items such as a minimum tax rate on those with earnings above $1 million, is not expected to make it through Republicans.
[Read More: Democrats to unveil bill to replace budget cuts]
With every day that passes, the sequester looks more likely, which has led JPMorgan economist Mike Feroli to lower his forecast for the nation's growth in 2013. JPMorgan’s previous outlook had assumed the cuts would be avoided. “That assumption isRead More »from JPMorgan Economist Cuts GDP Estimate for Sequester