The agreement on raising the debt ceiling in the United States is ready to be transmitted to Congress. US President Joe Biden said. “This is an important step forward,” Biden said. Kevin McCarthy, the Republican Speaker of the House of Representatives, is confident that “95 percent of Republicans will vote for the agreement.” Meanwhile, more details about the text are also emerging.
In the United States, Congress decides the maximum amount of money the state can borrow. Raising the debt ceiling is usually a routine job, but tensions between Republicans and Democrats make it increasingly difficult. This time, too. And that poses a threat, because without an agreement, the United States is in danger of no longer being able to pay its bills and the economy is in jeopardy.
A few days ago, Treasury Secretary Janet Yellen warned that if a deal was not reached soon, the US would enter default status on June 5. That would have disastrous consequences for international financial markets and would also bring much of the US government to a standstill.
Yesterday, President Biden announced that an agreement in principle had been reached. Not much was yet known about the content because the details of the text still had to be proofread and approved by the negotiators. After that, the text must also be approved by Congress.
President Biden announced last night that the text is ready to be forwarded to the House of Representatives and the Senate. He called on both chambers to approve the agreement. “This is an important step forward. It removes the threat of a catastrophic default and protects our well-deserved, historic economic recovery. And the agreement is a compromise, which means no one got everything they wanted, but that’s part of the responsibility of governing.”
About the author: John Campbell
John Campbell is the godfather of Polimedia and the oldest author from the whole team. His occasional guidance is crucial for everyone he advises.
