Closer to US budget deal

Photo: The Canadian Press

US Treasury Secretary Steve Mnuchin 

U.S. Treasury Secretary Steven Mnuchin says budget and debt negotiators have reached an agreement on the core elements of a deal to increase the government's borrowing cap and set a $1.3 trillion overall level for the agency budgets that Congress passes each year.

Speaking on CNBC's "Squawk Box" on Thursday, Mnuchin said negotiations with House Speaker Nancy Pelosi have settled on a debt limit increase that would cover two years. He said they've agreed on spending levels, too, though he did not disclose them.

Still to be resolved are offsetting spending cuts to help finance the deal and other "structural issues."

Mnuchin is taking the lead for the administration in negotiations. Conservative forces in the White House and House Republicans don't like the way the deal is shaping up.