Wall St. shrugs off 'Spectator in Chief'

When it comes to worrying over a possible debt default, Wall Street is brushing off President Barack Obama’s warnings and focusing its attention instead on Congress.

Investors say they currently view the words and deeds of Congress as having more power to move markets because the president is not viewed as being intimately involved in the ongoing fiscal negotiations — more of a spectator in chief as the House and Senate fight over how to break their impasse.

“The financial markets seem to believe at this point it’s really in the hands of the House and the Senate,” said Joseph LaVorgna, chief U.S. economist with Deutsche Bank. “In other words, I think the market’s focused more on what might be happening between [Senate Majority Leader] Harry Reid and [Speaker] John Boehner than the president.”
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