Deal Reached with Biden and McCarthy to Raise US Debt Ceiling
• US President Joe Biden and House Majority Leader Kevin McCarthy have reached a tentative agreement to address the pressing issue of raising the US debt ceiling.
• The proposed deal will increase the $3.4 trillion US debt ceiling by an additional $4 trillion for two years.
• Both sides celebrated the development and progress, expressing hope that it would lead to a more concrete, long-term solution.
Progress on Debt Ceiling Crisis
After months of deadlock between the Democrats and the Republicans, US President Joe Biden and House Speaker Kevin McCarthy finally reached a deal to increase the debt ceiling. This development comes after weeks of intense negotiations between the two political leaders.
Details of Tentative Deal
Under the proposed deal, Congress will agree to raise the $3.4 trillion US debt ceiling by an additional $4 trillion for two years. This will allow the Government to continue borrowing funds to meet its financial obligations. Moreover, it will grant the Biden Administration some relief ahead of the 2024 Presidential polls.
The agreement demonstrates a crucial bipartisan effort to prevent a potentially catastrophic default on US debt. Joe Biden and Kevin McCarthy were pleased with the outcome The agreement to increase the debt ceiling was met with enthusiasm from Republicans and Democrats alike. Both sides celebrated the development and progress, expressing hope that it would lead to a more concrete, long-term solution .
Reaction from Leaders
Kevin McCarthy shared news about their tentative deal on his official Twitter page calling it “an important step forward” while President Biden described this as an important compromise that prevented what could have been a catastrophic default leading to economic recession, retirement accounts devastated and millions jobs lost..
The US Treasury Secretary Janet Yellen had warned on several occasions that Government would run out money by early June in case no action was taken. Therefore this timely agreement is keeping government afloat in order for them find more permanent solutions in near future