The US Faces A Recession Made In Washington

The Financial Times is concerned that the US economy will slow down if the political battle in Washington over the budget is not resolved.  House Republicans are committed to spending cuts by whatever means possible.  After winning the presidential election, Democrats are not willing to turn control over the government to the losing party.  If the sequester goes into effect, the US economy will slow down.  Among other things, that will increase the federal budget deficit, since tax revenues will fall below plan.  It will also be harmful to the global economy which is anchored to the performance of the US economy.