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29 Oct 2015
US 11th hour agreement on debt ceiling - BNP Paribas
FXStreet (Guatemala) - Alexandra Estiot, analyst at BNP Paribas noted that once again, the debt ceiling had become a threat.
Key Quotes:
"The Treasury estimated that by Monday 2 November it would have exhausted the exceptional cash management measures which, since March, had allowed it to meet the obligations of the federal government without issuing debt. Months of fruitless negotiations finally gave way to an agreement, coming, yet again, at the eleventh hour."
"The agreement – reached between members of Congress and President Obama – was approved by the House and will soon be reaching the Senate floor. It would allow a new suspension of the debt ceiling until March 2017.
The agreement would also allow a relaxation, over the short term, of spending limits, without any substantial change on the medium-term fiscal outlook."
Key Quotes:
"The Treasury estimated that by Monday 2 November it would have exhausted the exceptional cash management measures which, since March, had allowed it to meet the obligations of the federal government without issuing debt. Months of fruitless negotiations finally gave way to an agreement, coming, yet again, at the eleventh hour."
"The agreement – reached between members of Congress and President Obama – was approved by the House and will soon be reaching the Senate floor. It would allow a new suspension of the debt ceiling until March 2017.
The agreement would also allow a relaxation, over the short term, of spending limits, without any substantial change on the medium-term fiscal outlook."