11 Dec 2013
US budget deal ensures no shutdown in Jan 2014
FXstreet.com (Bali) - In a rare display of bipartisanship, Republicans and Democrats reached common ground on a US budget deal, with Rep. Paul Ryan saying it ensures no government shutdown in January.
According to Ryan, at Tuesday night press conference: “This bill reduces the deficit by $23 billion, it does not raise taxes, and it cuts spending in a smarter way,” adding that “I see this agreement as a step in the right direction.”
Ryan added: "“I’m proud of this agreement, it reduces the deficit—without raising taxes. And it cuts spending in a smarter way. It’s a firm step in the right direction, and I ask all my colleagues in the House to support it.”
“This agreement breaks through the recent dysfunction to prevent another government shutdown and roll back sequestration’s cuts to defense and domestic investments in a balanced way,” said Murray.
“It’s a good step in the right direction that can hopefully rebuild some trust and serve as a foundation for continued bipartisan work.”
According to Eamonn Sheridan from Forexlive: "This move towards fiscal certainty, to the extent it has a positive impact on the US economy (as I am sure it will, at least in the next few years) increases the chances of a taper sooner rather than later. Is December taper back on the table? I suspect so (if it was ever off it)."
While the agreement prevents major clashes over budget until 2015, another issue to resolve is the US debt ceiling, due to be discussed in February. If deep divisions between Republicans and Democrats are observed, Janet Yellen may think twice before embarking on QE exit.
According to Ryan, at Tuesday night press conference: “This bill reduces the deficit by $23 billion, it does not raise taxes, and it cuts spending in a smarter way,” adding that “I see this agreement as a step in the right direction.”
Ryan added: "“I’m proud of this agreement, it reduces the deficit—without raising taxes. And it cuts spending in a smarter way. It’s a firm step in the right direction, and I ask all my colleagues in the House to support it.”
“This agreement breaks through the recent dysfunction to prevent another government shutdown and roll back sequestration’s cuts to defense and domestic investments in a balanced way,” said Murray.
“It’s a good step in the right direction that can hopefully rebuild some trust and serve as a foundation for continued bipartisan work.”
According to Eamonn Sheridan from Forexlive: "This move towards fiscal certainty, to the extent it has a positive impact on the US economy (as I am sure it will, at least in the next few years) increases the chances of a taper sooner rather than later. Is December taper back on the table? I suspect so (if it was ever off it)."
While the agreement prevents major clashes over budget until 2015, another issue to resolve is the US debt ceiling, due to be discussed in February. If deep divisions between Republicans and Democrats are observed, Janet Yellen may think twice before embarking on QE exit.