According to an individual familiar with the discussions, U.S. President Joe Biden and top Republican lawmaker Kevin McCarthy are close to reaching an agreement on the U.S. debt ceiling, with the parties only $70 billion apart on discretionary expenditure.
According to a person briefed on the negotiations, what is likely to arise is a shorter version of the bill with some key points, rather than a hundreds-page long bill that will take time for lawmakers to write, read, and vote on.
According to one of the individuals, negotiators will work out top line figures for discretionary spending, notably a number for military expenditure, but will leave lawmakers to hammer out the minor details through the usual appropriations process in the months ahead.
As per the federal figures, in 2022, U.S. discretionary expenses exceeded $1.7 trillion, representing 27% of the net $6.27 trillion spent. Around half was that for defense, an area Republicans have said they won’t reduce.
Per the source, the end result would possibly merely put guardrails on future budget talks, not clarify detailed revenue.
The White House refused to respond.
On Wall Street, the S&P 500 grew less than a percent, U.S. Treasury bonds dipped in value and the U.S. dollar reached its highest levels since March as markets absorbed more positive news on the debt-limit from Washington.
