“President Joe Biden’s top budget official urged lawmakers to swiftly broker an agreement on spending levels for federal agencies for the current fiscal year,” said Bloomberg during early Thursday morning in Asia.
The news adds the reasons behind the move as to, “Avoid another stopgap bill when the current short-term measure runs out in a little over six weeks.”
Key quotes (from Bloomberg)
In a letter obtained by Bloomberg News, Acting Budget Director Shalanda Young wrote to the leaders of the House and Senate Appropriations Committees urging swift talks on top-line spending levels for the year that began October 1.
The 12 draft bills cover regular agency spending, distinct from the longer-term economic bills now before Congress. Democratic congressional leaders are hoping to pass Biden’s estimated $2 trillion tax and social safety net package and a $550 billion bipartisan infrastructure bills in the coming days.
Lawmakers will then need to pivot to avoiding a government shutdown after Dec. 3, when the current stopgap funding measure runs out, addressing the federal debt ceiling. The Treasury’s borrowing authority is set to run out around the same Dec. 3 deadline.
On a different page, the US House Democrats have added an extra meeting around 13:00 GMT Thursday for negotiations over US President Joe Biden’s stimulus plan. The reason could be the latest demands from the Republicans to remove the majority of Biden’s component from the stimulus proposal.
Late on Thursday, Reuters came out with the news saying, "White House spokeswoman Jen Psaki said on Wednesday that it is still realistic for congress to get a deal on U.S. President Joe Biden's signature spending agenda by Thursday." The hopes of a deal on Thursday were also backed by the Senator Joe Manchin.
FX implications
The news adds to the cautious sentiment in the market and weighs on the S&P 500 Futures by the press time.
Read: AUD/USD: Bulls take a breather below 0.7565 hurdle ahead of US GDP
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