“US President Biden Strikes Tentative Deal to Avert Historic Bankruptcy”

US President Joe Biden on Sunday expressed confidence that the tentative deal he struck with House Speaker Kevin McCarthy on Saturday to avert a historic US bankruptcy. will reach his desk for signature“Blouberg” reports.

The president he no longer expects any obstacles to fail the agreement.

Early Sunday morning McCarthy defended the deal, calling it “a step in the right direction” and predicted it would succeed in getting a majority of Republicans to support her.

It will be recalled that the two signed the agreement during a 90-minute telephone conversation on Saturday. They reached an agreement in principle to raise the debt ceiling in two years and cost containment.

With this deal, the US takes a step away from the brink of historic bankruptcy.

Now comes the vote in both houses of Congress, where Republicans control the House of Representatives and Democrats control the Senate.

The deal must be accepted before June 5 – the crucial date after which, as Treasury Secretary Janet Yellen has warned, the US will no longer be able to pay its bills.

If the deal eventually passes Congress and is signed by Biden before the so-called X-date, the White House and House Republicans will have avoided an unprecedented economic crisis.

There is still no agreement on the US debt

Biden and the Republicans are not converging positions, and June 1 is approaching

An unprecedented US government default could trigger a global recession and the loss of millions of jobs, a scenario that loomed in last-minute talks over the holiday weekend.

The two-year deal would also delay the next fight to raise the debt ceiling until after the 2024 election.