Biden and the Republican Party Reach Agreement on Debt Ceiling

The White House and the Republican Party have finally come to an agreement on raising the federal debt ceiling, likely preventing a default that would have shaken not only the U.S. economy but also the global economy. This information is reported by Reuters.

On the evening of May 27, U.S. President Joe Biden and Speaker of the House Kevin McCarthy reached a preliminary agreement that will allow for an increase in the federal debt, which has already surpassed $31.4 trillion.

“I spoke on the phone with the president some time ago. After he wasted time and refused to negotiate for months, we reached a principled agreement that the American people deserve,” McCarthy wrote on Twitter.

It is also noted that it is too early to celebrate a victory for the deal, as it still has a difficult path ahead to receive final approval in the U.S. Congress. The agreement will freeze the responsibilities arising from exceeding the debt ceiling for two years.

Biden called the deal an important step in his statement. According to him, the agreement is a compromise, meaning not everyone gets what they want. That is the responsibility of the leadership.