US strikes budget deal ahead of time as regulators pass Volcker rule

US politicians have agreed a deal to set spending levels until 2015, on the same day that the 'Volcker rule' curbing bank trading was finally passed by regulators.

Democrat and Republican negotiators agreed the $85bn budget deal yesterday evening. While small in size, the agreement - should it be approved by Congress - will likely avert a government shutdown in January 2014 and again next October. The deal also eases the impact of some of the "sequestration" budget cuts that came into force this March, though it does not include a further raising of the US debt limit. New government borrowings still have to be separately approved by Congress in early 2014. Meanwhile, the five main US regulatory agencies have passed the Volcker rule, which ban...