Though stocks rallied Wednesday on news that Senate leaders had struck a deal to raise the debt ceiling and end the government shutdown, some market observers expressed disappointment about the bill's failure to address the nation's long-term debt problems and warned that another budget battle could have more negative implications on the economy.
The agreement would extend U.S. borrowing authority until Feb. 7, although the Treasury Department would have tools to temporarily extend its borrowing capacity beyond that date if Congress failed to act early next year. It also would fund government agencies until Jan. 15, ending a partial government shutdown that began with the fiscal year on Oct. 1.
(Read more: Despite DC deal, market rally could be cut short)
"It feels like this is just kicking the can down the road," said Larry Fink, CEO of BlackRock, one of the world's largest investment firms. "It's going to have a lasting damage to consumer confidence, a lasting damage to CEO behavior in terms of job creation and, importantly, it's going to create a marginal change in foreign investors' behavior in investing in U.S. Treasurys."
In turn, Fink told "Closing Bell" he expects a "pretty weak fourth quarter" and a slow start to the first half of next year. He also suspects that another budget fight will prompt the Federal Reserve bank to continue its quantitative easing program