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 On the Road Challenge: Clay pigeon shooting with Thesis' Lansdowne

On the Road Challenge: Clay pigeon shooting with Thesis' Lansdowne

Eleanor Mahmoud goes clay shooting at the National Clay Shooting Centre with Sam Lansdowne from Thesis Asset Management

Play AA-rated Flood on gov't bonds: 'the maths doesn't add up'

AA-rated Flood on gov't bonds: 'the maths doesn't add up'

He also addresses why his Newton Multi-Asset Income fund has such a high cash weighting and why he sees renewables as such a good opportunity.

Play AAA-rated Ali: Identifying the peripheral European plays

AAA-rated Ali: Identifying the peripheral European plays

Citywire AAA-rated Tawhid Ali thinks that plenty of good stocks in the European periphery are being thrown out with the proverbial bath water.

Read More
Your Business: Cover Star Club

Profile: Brewin's Cardiff boss on the Welsh opportunity

Profile: Brewin's Cardiff boss on the Welsh opportunity

Prior to becoming head of Brewin Dolphin Cardiff, Welshman David Myrddin-Evans had only previously visited the city to watch the rugby.

Wealth Manager on Twitter