Crypto Legal Network Logo

Breakthrough Agreement Reached to Resolve Long-standing US Debt Limit Crisis

breakthrough agreement reached to resolve long standing us debt limit crisis

Recently the ongoing debt limit crisis in the USA has taken a positive turn as the parties involved have reached an agreement in principle . Let’s dive into the details of this crucial case .

House Speaker Kevin McCarthy announced today that an agreement in principle has been reached between the two: White House and Republicans . The deal intends to raise the debt ceiling and implement spending limits for a two-year long period and preventing the United States from facing a historic default .

Agreement in Principle

According to sources closely familiar with the matter Presidents Joe Biden and McCarthy held a phone call on Saturday, during which they reached an agreement in principle . While this marks a significant step forward both leaders now face the challenge of gaining acceptance for the deal from their respective allies in Congress on which Republicans control the House of Representatives and Democrats control the Senate .

breakthrough agreement reached to resolve long standing us debt limit crisis 2

Critical Deadline 

The deal must be adopted before June 5 which is a crucial date emphasized by Treasury Secretary Janet Yellen when the United States would no longer be able to meet its financial obligations . The urgency to reach a resolution is paramount to avoid severe consequences .

McCarthy’s Announcement and Biden’s Statement

While speaking to reporters, McCarthy expressed his satisfaction with the progress made and said that “After weeks of negotiations we reached an agreement in principle . While there is still work ahead, I believe this is an agreement that serves the best interests of the American people .”. President Biden echoed this sentiment in a statement and affirmed that the agreement protects the priorities and legislative achievements of himself and the Democrats in Congress . He emphasized that compromise is essential and recognized that not everyone will achieve their desired outcomes .

Key Highlights of the Deal

The two-year agreement also includes a provision to postpone the next challenge of raising the debt ceiling until after the 2024 elections . This adds somewhat of stability and avoids immediate confrontations on the issue .

Ongoing Review and Potential Challenges

Following a briefing to House Republican members on the negotiation status the text of the agreement will undergo a thorough review overnight by both parties to ensure it aligns with the temporary agreement . Multiple sources with knowledge of the matter revealed this review process . The White House plans to inform Democrats about the agreement on debt limit on Sunday according to a source by Democrats .

Mixed Reactions and Conservative Opposition

Some conservative members within McCarthy’s party expressed their dissatisfaction . Representative Bob Good, a member of the House Freedom Group voiced his opposition during a House Republican Party meeting on Saturday night . Good criticized the deal by claiming that it increases the debt limit beyond what the US can save under the proposed plan .

Read Previous

WEF Proposes Cooperative Approach for Effective Crypto Regulation Amidst US Regulatory Debate

Read Next

Stablecoin Market Faces Prolonged Contraction, Raises Concerns for Crypto Ecosystem

Leave a Reply

Your email address will not be published. Required fields are marked *