• After months of deadlock, the US President Joe Biden and House Speaker Kevin McCarthy have agreed to a deal that will increase the debt ceiling by an additional $4 trillion for two years.
• This agreement is good news for the American people, as it prevents what could have been a catastrophic default and would have led to an economic recession, retirement accounts devastated, and millions of jobs lost.
• The US Treasury Secretary Janet Yellen had warned on several occasions that the Government would run out of money by early June.
Progress Achieved 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. 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.
Reactions from Political Leaders
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. Calling it “an important step forward”, President Biden described it as an important compromise to prevent a potential default on US debt.
Treasury Secretary Warns of Default
US Treasury Secretary Janet Yellen had warned on several occasions that if left unchecked then there was a possibility that Government would run out of money by early June leading towards a potentially catastrophic default on US debt.
A Bipartisan Effort
This agreement demonstrates a crucial bipartisan effort between President Joe Biden & House Speaker Kevin McCarthy in order to prevent such an event from taking place in near future. They were pleased with this outcome as it provides necessary relief ahead of 2024 Presidential polls while avoiding any disastrous default scenario at same time.
Conclusion
In conclusion, this tentative agreement is good news for American people as it will help them avoid facing any economic recession or job losses due to possible defaulting on US debts which was prevented through this timely accord between both political parties involved in negotiations.