US President Joe Biden announced on Saturday evening that he and House Speaker Kevin McCarthy reached an agreement “in principle” regarding the budget and debt ceiling.
In a statement by the White House, Biden said, “It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone.” According to several news outlets, the agreement would enable to raise the federal government’s USD 31.4 trillion debt ceiling after months of debate on the issue.
He added that the agreement “protects my and Congressional Democrats’ key priorities and legislative accomplishments.” “The agreement represents a compromise, which means not everyone gets what they want. That’s the responsibility of governing,” he continued. He affirmed, “This agreement is good news for the American people, because it prevents what could have been a catastrophic default and would have led to an economic recession, retirement accounts devastated, and millions of jobs lost.” “Over the next day, our negotiating teams will finalize legislative text and the agreement will go to the United States House and Senate,” he noted. “I strongly urge both chambers to pass the agreement right away.” On Friday, Secretary of Treasury Janet Yellen warned that the Treasury would have “insufficient resources to satisfy the government’s obligations if Congress has not raised or suspended the debt limit by June 5.”
Source: Kuwait News Agency
