Though you wouldn't be able to tell from the price action in US stocks, which roared back into the green after John Williams offered some of the most dovish comments yet re: a July rate cut, only for his comms staff to walk them back hours later, the market is getting anxious about the prospects for a deal to raise the debt ceiling, which the White House has promised would be reached before the end of the summer.
After the Trump administration and congressional leaders reportedly "Reached an agreement" on overall spending levels in a two-year deal to raise budget caps - Congress wants a two-year budget agreement to accompany any deal to raise the debt ceiling - the difficult part of the negotiations is now at hand: That is, agreeing on the offsetting cuts that the White House is demanding.
The latest update on these negotiations has been brought to us by Bloomberg, which reported late Thursday that the White House has offered Pelosi a "Menu" of spending cuts that would offset the budget-cap increases.
In total, the 'menu' equals at least $574 billion, and the White House is seeking to pay for at least $150 billion of the cost for raising the caps via these cut, which Pelosi must now accept or reject.
One of the suggested reforms is the drug pricing plan from the White House's 2020 budget, which would save $115 billion.
Under current law, $126 billion in automatic cuts would take effect by the end of the calendar year if the caps are not raised.
We wouldn't be surprised to see AOC and her "Squad" - who seem to have no respect, or even an understanding of, financial markets - push back against any proposed cuts, leaving Pelosi in an even more difficult position.
https://www.zerohedge.com/news/2019-07-19/white-house-offers-pelosi-menu-spending-cuts-debt-ceiling-talks-enter-most
After the Trump administration and congressional leaders reportedly "Reached an agreement" on overall spending levels in a two-year deal to raise budget caps - Congress wants a two-year budget agreement to accompany any deal to raise the debt ceiling - the difficult part of the negotiations is now at hand: That is, agreeing on the offsetting cuts that the White House is demanding.
The latest update on these negotiations has been brought to us by Bloomberg, which reported late Thursday that the White House has offered Pelosi a "Menu" of spending cuts that would offset the budget-cap increases.
In total, the 'menu' equals at least $574 billion, and the White House is seeking to pay for at least $150 billion of the cost for raising the caps via these cut, which Pelosi must now accept or reject.
One of the suggested reforms is the drug pricing plan from the White House's 2020 budget, which would save $115 billion.
Under current law, $126 billion in automatic cuts would take effect by the end of the calendar year if the caps are not raised.
We wouldn't be surprised to see AOC and her "Squad" - who seem to have no respect, or even an understanding of, financial markets - push back against any proposed cuts, leaving Pelosi in an even more difficult position.
https://www.zerohedge.com/news/2019-07-19/white-house-offers-pelosi-menu-spending-cuts-debt-ceiling-talks-enter-most
No comments:
Post a Comment