July 23, 2019–U.S. lawmakers agreed to raise the limit on incurring national debt to $22 trillion to July 31, 2021. They also agreed to a two-year budget agreement that increases spending by $320 billion.
Democratic House Speaker Nancy Pelosi called it a “bold, bipartisan and a victory for Democrats and the American people.” President Donald Trump said in a tweet the deal is “a real compromise in order to give another big victory to our Great Military and vets.”
According to Pelosi’s statement, the deal increases both defense and non-defense spending and avoids a government shutdown.
The U.S. national debt has risen from $11.9 trillion in 2009 to $22 trillion in 2019. Meanwhile, the interest on the debt (marketable non-government) has risen from 2.28 percent to 2.5 percent in the last year.
Loose Monetary Policies
Meanwhile, the Federal Reserve is facing increasing criticism for its plan to cut already-low interest rates next week.
Both U.S. and E.U. economies are experiencing low inflation. Loose monetary policies in both regions are a sign of uncertainty for the economies and markets.
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