US Government’s Debt Limit Extended by Two Years - Forex News by FX Leaders
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US Government’s Debt Limit Extended by Two Years

Posted Tuesday, July 23, 2019 by
Arslan Butt • 1 min read

On Monday, President Trump and US congressional leaders agreed to a two-year extension of US debt limit and federal spending caps. According to Trump’s tweet, “I am pleased to announce that a deal has been struck with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Nancy Pelosi, and House Minority Leader Kevin McCarthy.”

While this move would prevent a government default on $22 trillion worth of debt, which was to take place as soon as September, rising budget deficits would become a bigger concern for the US government now. As a result of this latest agreement, the US Treasury Department’s borrowing authority has been extended till July 31, 2021.

The government can also now set spending limits on defense and non-defense programs, while spending on discretionary programs can rise to $1.37 trillion from the previous figure of $1.32 trillion.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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