Debt Ceiling Deal Reached “In Principle” To Avoid Default – Crypto News – Crypto News
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Debt Ceiling Deal Reached “In Principle” To Avoid Default – Crypto News

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US President Joe Biden and House Representative Kevin McCarthy have reached a deal in principle to raise the government’s $3.4 trillion debt ceiling days before the default deadline.

The tentative agreement between the two parties would raise the debt limit for two years while limiting spending over that time. However, the deal still needs approval from a divided Congress next week before the US government runs out of money to pay its debt on June 5.

Joe Biden calls debt ceiling agreement a “compromise”

US President Joe Biden described the tentative agreement as a “compromise”, while House Speaker Kevin McCarthy said it “has historic reductions in spending.” “The agreement represents a compromise, which means not everyone gets what they want,” Biden said in a statement late on Saturday. “That’s the responsibility of governing,” he added.

Biden called the debt ceiling agreement “good news for the American people because 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.”

BBC reported that non-defense government spending would be kept flat for two years and then rise by 1% in 2025.

Final vote will be on 31st May

In his remarks at the Capitol, the Republican representative said that there is still a lot of work to be done but believes this is an agreement in principle that’s worthy of the American people. He added that he expects to finish writing the bill on Sunday, then speak to Biden and have a vote on the deal on Wednesday, May 31st. However, Biden and McCarthy both need to convince members of Congress in their own parties in favor of the deal before a vote is reached this coming week.

Read More: Biden Says Won’t Accept A Deal That Benefits Crypto Traders

Jai Pratap is a Crypto and Blockchain enthusiast with over three years of working experience with different major media houses. His current role at CoinGape includes creating high-impact web stories, covering breaking news, and writing editorials. When not working, you’ll find him reading Russian literature or watching some Swedish movie.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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