US: Biden, Republicans reach in principle deal to avert catastrophic debt default
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The US government will be hitting its borrowing limit on June 5 which could have led to disastrous debt default
United States President Joe Biden struck a deal in principle with Republican lawmakers to increase the debt ceiling of the country on Saturday, in a first crucial step towards averting the disastrous default with a few days to spare.
On June 5, the government is likely to hit its borrowing limit which was increasing the chances of the world's largest economy defaulting on its repayment obligations and putting the global markets on fire.
Congress to vote on debt ceiling bill Wednesday: McCarthy
Confirming the striking of a deal in principle in ongoing negotiations between Republicans and the White House to increase the debt ceiling, Republican leader Kevin McCarthy said that Congress is likely to vote on Wednesday.
"I just got off the phone with the president a bit ago," tweeted McCarthy on Saturday evening. "After he wasted time and refused to negotiate for months, we've come to an agreement in principle that is worthy of the American people, he added.
Republicans are poised to deliver big, consequential change in Washington. Soon, we will vote for a responsible debt limit agreement that stops Democrats' reckless spending, claws back unspent COVID funds, blocks Biden's new tax schemes, & much, much more
Sunday, May 28, 2023 at 1:37 am