Debt in the United States | Republicans say that the agreement to raise the debt ceiling in the United States is “close”

Debt in the United States |  Republicans say that the agreement to raise the debt ceiling in the United States is “close”

2023-05-28 04:29:07

The White House and the Republicans reached a “principle of agreement” this Saturday to raise the debt ceiling and prevent the United States from entering into suspension of payments, confirmed the speaker of the House of Representatives, Kevin McCarthy.

“I just got off the phone with the president a while ago. After he wasted his time and refused to negotiate for months, we have reached an agreement in principle that is worthy of the American people,” McCarthy said in a message on social media.

Minutes later, in a brief appearance before the press, McCarthy assured that the agreement includes a “historic” reduction in public spending and reforms that “will lift people out of poverty and into the workforce.”

In addition, he stressed that it does not contain new taxes or new government programs.

“We still have a lot of work to do tonight to finish all the text” of the agreement, warned the leader of the Republicans in Congress, who did not want to answer questions from the press.

This decision is known a few hours after the telephone conversation that the president had this afternoon Joe Biden con McCarthy.

When a definitive agreement is reached, the 72-hour rule will have to be followed, which gives legislators three days to read the text before voting on it in the camera.

Thus, the consensus that the federal debt limit will increase in exchange for spending cuts requested by Republicans it must be turned into legislative language and passed in both the Republican-led House of Representatives and the Democratic-controlled Senate.

This Friday the Secretary of the Treasury, Janet Yellen, updated its estimate of the deadline after which the country could find itself in default if Congress does not first agree to raise or suspend the debt ceiling.

Yellen informed that the date will be June 5th, four days later than the estimates he had previously made.

The debt limit is the total amount of money that the United States Government is authorized to borrow to meet your existing legal obligations and be able to pay Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments.

every so often, The United States is facing default on the national debt because, unlike other countries, the Government can only issue debt up to the limit established by Congress, which has the power to raise that ceiling as it sees fit.

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The country reached its legal debt limit of 31.4 trillion dollars on January 19, equivalent to 29 billion euros, which led the Treasury Department to resort since then to extraordinary measures to pay the bills, suspending some payments to retirement funds of federal employees and the social security of postal employees, among others.

The use of these special financial tools can be extended until June 5, at which point the United States would go into bankruptcy if the Republicans and Democrats do not reach an agreement.

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