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7/22, 4:02 PM (Source: TeleTrader)
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US budget deal to raise debt ceiling for 2 years - reports

The White House and congressional Democrats are nearing a budget deal that would raise the United States' debt ceiling for two years, CNBC reported on Monday citing a source familiar with the matter.

The source said that an agreement to prevent the US from hitting its borrowing limit and stop government funding from lapsing is "near final" and added that the remaining discussions relate to "technical language issues." If the deal is approved, it would suspend the debt ceiling until July 31, 2021, and permanently end the sequester, automatic across-the-board spending cuts that would have taken effect in January. It would also include parity between defense and domestic, non-defense outlays as well as $75 billion in spending offsets, which conservatives have backed.

The news comes after previous reports hinted that lawmakers were examining the possibility of adopting a temporary increase for the debt ceiling before the August recess. US Treasury Secretary Steven Mnuchin also said that he wanted Congress to raise the government debt ceiling before the summer break. The current two-year budget is set to expire in September and failure to extend it would lead to the second government shutdown this year.

Breaking the News / DZ