Economics

Mnuchin Says Deal on Budget, Raising Debt Limit ‘Very Close’

  • Leading proposal includes suspending debt limit for 2.5 years
  • Pelosi optimistic, though details remain to be negotiated
Steven Mnuchin in Chantilly on July 18.Photographer: Jasper Juinen/Bloomberg
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Treasury Secretary Steven Mnuchin said the Trump administration and congressional Democrats have agreed on spending levels for a budget deal that could clear the way for raising the federal debt limit before Congress leaves town.

Mnuchin also signaled that he’d settle for a short-term increase in the government’s borrowing limit if all the budget details can’t get worked out in time, though House Speaker Nancy Pelosi has indicated she’ll resist a temporary debt limit hike.