The White House and Congress managed to cut a deal on the “fiscal cliff” by agreeing to a two-month delay to sequestration – automatic spending cuts that were set to take effect on January 1.
Obama and lawmakers now have until March 1 to reach agreement on about $85 billion in spending reductions. If they do not, they will see across-the-board ones kick in, about evenly split between military and domestic programs.
Obama and Congress likely have until the end of February to raise the U.S. debt limit, now at $16.4 trillion.
Failure to do so would result in an unprecedented U.S. default, a move likely to rattle financial markets worldwide.
Obama says he will refuse to allow the debt limit to become a political bargaining tool again.
But Republicans do not seem be willing to raise it without extracting major spending cuts, mostly from government programs such as Social Security and Medicare.
Via – Reuters
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
