Finally, official sources have confirmed that President Joe Biden and House of Representatives speaker Kevin McCarthy have reached a deal in order to prevent a default by the United States.
The final decision regarding the deal was taken on Sunday and the agreement seeks to raise the debt ceiling of the nation. The deals also will agree to ensure that there are enough votes from both the Republican and Democratic sides in order to pass the measure in the coming week.
The final decision regarding the deal was taken during the meeting between the president and the speaker on Sunday and the leaders of the parties are trying to gather the support that the bill needs from the political middle as the voting regarding the bill is expected to be completed before June 5 in order to avert the possible default on the U.S. government.
Following the meeting with the speaker, President Joe Biden made the news regarding the deal public.
Biden explained the ‘good news’ by saying that an agreement has been taken in order to prevent the worst possible crisis the country could face now. He also added that the decision would take the threats of a catastrophic default off the table.
Even though the leaders were able to arrive at a suitable decision regarding the issue, it is just the beginning step in averting the issue of default. The deal should be passed by Congress in order to reach the president’s desk where it will be put into effect by the President’s signature.
Following the meeting with the speaker, President Joe Biden also urged both parties in Congress to come together quickly for the sudden passage of the deal. He said that it was made clear from the start that the only way forward was a bipartisan agreement in order to resolve the issue.
The decision regarding the deal was made on Sunday and the deal is said to include different measures including a few spending cuts and these measures are expected to anger some of the lawmakers.
Following his return from Delaware, Biden expressed his hope that the plan would make it to his desk while meeting with the press at the White House.
Showing similar hopes, the speaker of the House of Representatives Kevin McCarthy also shared the hopes of the members of Congress coming together to pass the new deal.
The following days are crucial for the United States as the deadline regarding the warning from the Treasury is closing in.
The country is expected to avert the default on the debt as it has done many times before but everyone across the globe is also closely watching the moves as the financial crisis in the country could result in a possible global economic crisis.
The after-effects of the default could be very harsh on the country as it could free up that market and also start a possible international financial crisis.
According to different experts, default could result in the vanishing of millions of jobs, a surge in the borrowing and unemployment rates, and also a plunge in the stock market that could possibly result in the erasing of trillions of dollars in household wealth.
According to the statement given by Speaker Kevin McCarthy at the Capitol on Sunday, the deal doesn’t get everybody everything that they wanted, meaning that both sides had to make the necessary compromises.
He also reminded me that the support of both parties was needed during the voting in Congress in order to pass the deal before the deadline, June 5.
The drive to arrive at a deal as soon as possible was from the warning given by Treasury Secretary Janet Yellen, who told Congress that the United States could face default in the debt obligations around June 5. Earlier, the warning stated June 1 as the deadline and later, it was fixed four days after the previously estimated one.
Must Read:- A New US Debt Deal Would Increase The Limit & Cap Spending For 2 Years
The current debt ceiling of the United States stands at around $31n trillion. As per the new deal, the raising of this limit allows the provision to make more loans in order to pay the bills already insured.
The nation is very eager to find the outcome of the votes of the Congress. Speaker Kevin McCarthy said in one of his statements that the majority of the Republicans were going to vote in favor of the deal while President Joe Biden also backed the claim by saying that he thinks the majority of the Democrats will also vote for it too.
The agreement is also expected to put pressure on the president as there are chances for people to criticize him for giving into what is called ‘hostage-taking’ by the Republicans.
Democratic Representative Pramila Jayapal, who is the current leader of the Congressional Progressive Caucus also shared her doubts regarding the support that the agreement will receive from the caucus members.
Read More:- Ron DeSantis Will Commence His 2024 Presidential Campaign On Twitter
