President Barack Obama just promised viewers of tonight’s presidential debate that the sequestration “will not happen,” effectively dismissing the possibility that the 10 per cent cuts to federal spending set to take place in January will actually go into effect.
That promise will likely come as news to Congress, which actually has the authority to stave off the possibility of sequestration.
The comment came during an intense sparring match with Mitt Romney over the size of the U.S. military budget.
This is probably the one thing said in the debate that has market implications. Watch the ITA ETF (defence) tomorrow, which theoretically should benefit if there’s no sequestration.
Watch the clip below:
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