Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

US agrees budget deal to avoid January sequester

US agrees budget deal to avoid January sequester

The US has agreed a budget deal early for the first time in two years that will enable the country to avoid a potential January shutdown and sequestration.

The agreement, thrashed out by Congress and the Senate, will see both domestic and military spending rise over the next two years. Taxes will not be cut, but there will be a rise in air fares and pension payments to federal workers.

House budget chairman Paul Ryan described the move as a 'step in the right direction', adding 'in divided government, you don't always get what you want. That said, we can still make progress to our goals.'

The bipartisan agreement will prevent around $65 billion of sequester in January and also includes $25 billion of Medicare savings through to 2023. In a sign of the compromise reached, the Republicans begrudgingly accepted the rise in spending, while Democrats had to stomach no extension to the unemployment benefits of 1.3 million workers that expire this month.

President Obama said in a statement: 'The agreement doesn't include everything I'd like and I know many Republicans feel the same way. That's the nature of compromise, but it's a good sign that Democrats and Republicans in Congress were able to come together and break the cycle of short-sighted, crisis-driven decision-making to get this done.'    

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter