OPINION
Market Rating Before FOMC MeetingJan 31
Biden Approves $768-Billion Defense Budget
The National Defense Authorization Bill (NDAA), which was voted 'yes' by the Senate on December 15 and includes defense spending for 2022 fiscal year, was signed into law by President Joe Biden.
Passed in the Senate in an 89-10 vote, the 768-billion-dollar package provides 740 billion dollars for the Defense Department, 27.8 billion dollars for defense-related activities in the Department of Energy, and another 378 million dollars for other defense-related activities.
The NDAA authorizes 25 billion dollars to increase Biden's defense budget request for fiscal year 2022. Also, it gives a 2.7 percent pay rise for military service members and the Pentagon's civilian employees.
In addition, the amount of military assistance to Ukraine increases from 250 million to 300 million dollars per year, provided for the provision of 4 billion dollars of resources to the European Deterrence Initiative against Russia and 100 million dollars of military support to the Baltic countries.
It also allocates 7.1 billion dollars to the Pacific Deterrence Initiative against China, prohibiting the US Department of Defense from purchasing products manufactured in factories where Uyghurs are forced to work in the Xinjiang Uyghur Autonomous Region of China. In addition, necessary defense cooperation with Taiwan is demanded to be continued and that the Taiwanese army remain modern.
In addition, the bill asks the US government to continue its military support to its partners in Iraq and Syria, including the YPG, the Syrian affiliate of the PKK terror group, ostensibly to fight ISIS.
With the enactment of the NDAA by President Biden, a significant decrease in investor stress was observed in international markets. VIX index fell to 17 and SP500 hit an all-time peak of 4809 points. DOW30 index was up 0.24 percent to 36 420 and NQ100, known as the technology index, rose 0.51 percent to 16 667 points.
Passed in the Senate in an 89-10 vote, the 768-billion-dollar package provides 740 billion dollars for the Defense Department, 27.8 billion dollars for defense-related activities in the Department of Energy, and another 378 million dollars for other defense-related activities.
The NDAA authorizes 25 billion dollars to increase Biden's defense budget request for fiscal year 2022. Also, it gives a 2.7 percent pay rise for military service members and the Pentagon's civilian employees.
In addition, the amount of military assistance to Ukraine increases from 250 million to 300 million dollars per year, provided for the provision of 4 billion dollars of resources to the European Deterrence Initiative against Russia and 100 million dollars of military support to the Baltic countries.
It also allocates 7.1 billion dollars to the Pacific Deterrence Initiative against China, prohibiting the US Department of Defense from purchasing products manufactured in factories where Uyghurs are forced to work in the Xinjiang Uyghur Autonomous Region of China. In addition, necessary defense cooperation with Taiwan is demanded to be continued and that the Taiwanese army remain modern.
In addition, the bill asks the US government to continue its military support to its partners in Iraq and Syria, including the YPG, the Syrian affiliate of the PKK terror group, ostensibly to fight ISIS.
With the enactment of the NDAA by President Biden, a significant decrease in investor stress was observed in international markets. VIX index fell to 17 and SP500 hit an all-time peak of 4809 points. DOW30 index was up 0.24 percent to 36 420 and NQ100, known as the technology index, rose 0.51 percent to 16 667 points.
