US President Trump: A two-year deal on debt limit suspension has been struck

Anil Panchal FXStreet

The US President Donald Trump again took his twitter handle to convey the Republicans’ victory in managing the world’s largest economy while conveying the news that the policymakers at the Congress have agreed over a two-year suspension to the debt limit.

Reuters cited congressional sources while stating that the deal negotiated by the US President Donald Trump and the US Congressional leaders would raise discretionary spending to $1.37 trillion in the fiscal year 2020, up from $1.32 trillion this year.

Key quotes:

I am pleased to announce that a deal has been struck with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Nancy Pelosi, and House Minority Leader Kevin McCarthy - on a two-year Budget and Debt Ceiling, with no poison pills.

This was a real compromise in order to give another big victory to our Great Military and Vets!

FX implications

Given the mostly expected turnout, Forex market showed almost no reaction to the news that should have helped the US Dollar (USD) to gain if the consensus would have been otherwise.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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