US President Joe Biden and Republican House Speaker Kevin McCarthy reached a tentative agreement to raise the US debt ceiling.
Biden and McCarthy had a 90-minute phone call earlier Saturday night (local time) to discuss the deal. The two political leaders have been trying for some time to find a middle ground to ensure that the United States can continue to pay its bills.
Exact details of what has been agreed upon are not yet known, but sources have reported that the debt ceiling will be raised for a period of two years. “We have work to do tonight to finish writing it,” McCarthy told reporters. The bill is expected to be finalized on Sunday. Then he discusses the matter with Biden and the agreement must be voted on on Wednesday.
The bill, Biden says, is “a compromise, meaning not everyone gets what they want. But it prevents what could have been a catastrophic bankruptcy and led to an economic recession, devastating pensions, and millions of lost jobs.”
In the United States, Parliament decides how much money the state can borrow. Without an agreement to raise the debt ceiling, the US government was at risk of default sometime in early June, with potentially dire consequences for international financial markets.
More time for the debt deal: The US won’t run out of money until June 5th
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