US President Joe Biden has reached a tentative deal with Republicans to raise the US government debt ceiling. With that, the United States seems out of the danger zone for the time being, but Congress still has to vote on the agreement.
According to sources, the US is going to raise the debt ceiling for two years. Further details are not yet known. The bill is expected to be completed on Sunday. Congress will vote on it on Wednesday. If there are enough votes, the agreement is final.
Biden says the bill is a “compromise, meaning not everyone gets what they want.” But he said the proposal would prevent a “catastrophic bankruptcy” that would have led to “an economic recession, devastated pensions and the loss of millions of jobs.”
The United States would run out of money on June 5 if no deal was reached between the Republicans and the Democrats. This could lead to major financial unrest worldwide. A large part of the US government could also come to a standstill.
Raising the debt ceiling is usually routine in the US. This time it was different because of the tensions between the Republicans and Democrats. Earlier this week, there seemed to be progress in the talks between the two sides. But they still differed on some important points.
2023-05-28 03:18:49
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