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Will Congress approach the next government funding fight differently this time?

As lawmakers in Congress finally settled a funding fight last month that could have resulted in a government shutdown, they are already gearing up for the next round of negotiations. The recent funding packages approved by Congress will keep the government open for the rest of the fiscal year, but with the fiscal year already halfway over, the process is set to start again.

The delay in approving annual spending bills is a common occurrence in Washington. In 2022 and 2018, the process stretched into March, and in 2017, it wasn’t resolved until May. This time around, Republican lawmakers in the House made a concerted effort to do things differently. After capturing the chamber in the 2022 midterm elections, Rep. Kevin McCarthy agreed to demands by hard-right conservatives to limit spending and take up funding bills individually. However, the process collided with the realities of governing, and McCarthy lost his position as Speaker.

Despite efforts to change the process by splitting the funding packages into two separate bills, the final spending package sailed through Congress in less than 48 hours. This rapid approval showed that little had changed in the way government funding is handled. Senator Patty Murray, the top Democratic appropriator in the Senate, expressed disappointment in the outcome.

The budget process, as outlined in the Constitution and the Congressional Budget and Impoundment Control Act of 1974, has a structured timeline for approving spending bills. However, in recent decades, Congress has rarely adhered to this timeline, often resorting to continuing resolutions and omnibus packages to fund the government.

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The recent funding fight highlighted the challenges of reforming the appropriations process. House conservatives pushed for individual bills and spending cuts, leading to delays in the funding process. Despite efforts to change the process, Congress ultimately stuck to its usual ways, prompting frustration among lawmakers who had hoped for reform.

Looking ahead to the next funding deadline in September, lawmakers are already falling behind schedule. Factors such as the upcoming election season and potential party control shifts further complicate the appropriations process. Lawmakers are urged to learn from the challenges of the recent funding fight and work towards bipartisan solutions that benefit the country.

In conclusion, while Congress is gearing up for the next government funding fight, the question remains whether this time will be any different. The recent struggles and frustrations in the appropriations process highlight the need for reform and bipartisanship to effectively fund the government and avoid economic consequences. The upcoming months will test lawmakers’ ability to work together and find solutions that benefit the American people.

Intellectuals Insider

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Is now the right time to invest in gold as prices have cooled?

Now may be the time to buy gold following a recent lull in its price.

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The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.

This lull in gold’s price may represent an investment opportunity.

In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?

Compare your gold investment options among leading brokers now.

Gold prices have cooled. Should you buy in now?

With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:

Prices may rise again

If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.

But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.

Add gold to your portfolio now before prices have a chance to rise.

You may be able to make a quick profit

Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.

Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.

There are other benefits of investing in gold

There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:

Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.

The bottom line

Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.