- The Republicans, who have a majority in the House of Representatives, and President Joe Biden have reached an agreement on the debt ceiling.
- Congress now has to vote on the deal.
- Without an agreement, there would have been a risk of default on June 5th.
US President Joe Biden spoke to House Speaker Kevin McCarthy on Saturday evening, among others. An agreement had been reached, as McCarthy explained to the media afterwards. It is about a preliminary agreement, which still has to be worked out in detail, according to the Republican.
In order to actually avert the US default, Congress must pass the agreement and the President must sign it. This should happen next week.
Joe Biden described the agreement as an important step towards reducing spending. At the same time, important programs for the working class would be preserved. “The agreement is a compromise, which means not everyone gets what they want,” Biden added.
A dispute over the debt ceiling had flared up in the past few weeks. The current ceiling is around $31.4 trillion. In order to maintain solvency, however, it must be increased. Republicans opposed an increase. For example, they demanded that government spending be cut.
Legend:
Republican McCarthy, the speaker of the House of Representatives, was a key player in negotiations with the government.
REUTERS/Jonathan Ernst
Treasury Secretary Janet Yellen recently warned that a possible default on June 5 could occur.