2023-05-28 08:03:00
US debt deal, chaos averted
The American president, Joe Biden and Republican House Speaker Kevin McCarthy have reached an “agreement in principle” to raise the debt ceiling and drastically reduce federal spending. This was stated by the Washington Post, quoting two sources close to the negotiations. The agreement, the first essential step to avoid economic chaos from June 5 onwards, should reflect the initial requests of the Republicans and, although the details are not yet clear, it shows Congress the path to avoid a fiscal crisis.
The vote in Congress on raising the debt ceiling is scheduled for next Wednesday, May 31st. “I just got off the phone with the president earlier,” Republican House Speaker Kevin McCarthy tweeted. “After he wasted time and refused to negotiate for months – he added – we have reached an agreement in principle worthy of the American people”. The deal, which would allow the government to meet its financial obligations, averts a storm in global markets and paves the way for the US government to increase its debt by more than $31.4 trillion over two years, avoiding a rating downgrade crisis, a probable recession and the loss of millions of jobs.
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