May 28, 2023 10:31 UTC
May 28, 2023 at 10:31 UTC
Biden achieves ‘tentative’ agreement on US debt ceiling: Report
The US House of Representatives and US Senate have been asked by US President Joe Biden to “pass the agreement right away.”
President Joe Biden of the United States and Republican Kevin McCarthy are said to have achieved a “agreement in principle” to increase the multi-trillion dollar debt ceiling for the federal government amid mounting worries over a probable default by early June.
The “tentative” deal to raise the $31.4 trillion debt ceiling was struck following a 90-minute phone call between Biden and McCarthy on May 27, according to a May 28 story from Reuters, citing two persons involved with the deliberations.
After this item was published, Biden later verified on Twitter that there was a “agreement in principle,” stating that it would prevent the United States from experiencing a “catastrophic default.”
The agreement would go before the U.S. House and Senate “over the next day,” according to Biden. He pleaded with both chambers to “pass the agreement right away.”
McCarthy also announced the agreement on Twitter at the same moment, claiming that Biden “wasted time and refused to negotiate for months.”
According to Reuters, despite the fact that “the exact details of the deal were not immediately available,” a decision has been reached to restrict government expenditure in the United States for the ensuing two years, with the exception of costs associated with national security.
According to a person familiar with the negotiations, “negotiators have agreed to cap non-defense discretionary spending at 2023 levels for one year and increase it by 1% in 2025.”
This comes shortly after U.S. Treasury Secretary Janet Yellen urged Congress to “act as soon as possible” and warned that if the debt limit isn’t suspended or raised, a default may occur as soon as June 1.
The U.S. Congressional Budget Office (CBO) also released a report on May 12 that emphasized the major risk that exists if the debt ceiling is not raised, “that at some point in the first two weeks of June, the government will no longer be able to pay all of its obligations.”
Recently, a number of analysts have expressed a similar belief that increasing the debt ceiling could result in increased investment in Bitcoin BTC tickers down $27,215 Former Wall Street trader MacroJack cautioned his followers in a tweet on May 17 that the discussions on raising the U.S. debt ceiling are “all show.”
As the dollar will be “printed into oblivion,” he emphasized the necessity of owning tangible assets, referring to Bitcoin as the “fastest horse in the race.”
As a result of the Covid-19 Pandemic, Jesse Myers, the chief operating officer of the investment firm Onramp, reminded his 50,100 Twitter followers of what had transpired, saying that “Bitcoin was the winner during the last round of stimulus.
He suggested that if the debt ceiling were raised because it would force the Federal Reserve to print more money, history might repeat itself.