Biden Reached ‘Tentative’ Agreement Regarding The US debt Ceiling : Report

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President Joe Biden has urged the House and Senate to swiftly pass an agreement he reached with Republican Kevin McCarthy. The agreement aims to raise the multi-trillion dollar debt ceiling of the federal government, as concerns about a possible default by early June grow.

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As per a Reuters report on May 28, citing two insider sources, a “tentative” agreement was reached to increase the $31.4 trillion debt ceiling. The agreement came about following a 90-minute phone call between President Biden and McCarthy on May 27.

After the article was published, President Biden took to Twitter to confirm the existence of an “agreement in principle.” He emphasized that this agreement is crucial in avoiding a devastating default for the United States. Biden further stated that the agreement will be presented to the House and Senate within the next day, urging them to promptly pass it.

McCarthy also expressed his confirmation of the agreement on Twitter, accusing Biden of wasting time and refusing to negotiate for several months.

According to Reuters, the specific details of the deal have not been disclosed yet. However, an agreement has been reached to restrict the government’s spending over the next two years, with the exception of expenses pertaining to national security.

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Also Read This Related: Breaking : US Denies Plans to Stall Payments Amid Debt Default Concerns

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Reuters reports that the exact details of the deal have not been revealed. Nevertheless, an agreement has been reached to limit the government’s spending for the next two years, except for national security-related expenses. This development follows U.S. Treasury Secretary Janet Yellen’s recent warning about the risk of default by June 1 if the debt limit is not suspended or increased. Yellen urged Congress to take swift action in response.

According to a report from the U.S. Congressional Budget Office (CBO) on May 12, it highlighted a substantial risk if the debt limit remains unchanged. The report warned that in the first two weeks of June, there is a significant possibility that the government will be unable to fulfill all its financial obligations.

Recently, many analysts have expressed a similar belief that raising the debt ceiling could lead to increased investment in Bitcoin (BTC). MacroJack, a former Wall Street trader, cautioned his followers in a tweet on May 17 that the U.S. debt ceiling discussions are merely for show.

He stressed the significance of owning tangible assets since the dollar will be excessively printed, and mentioned that Bitcoin is the most promising option in this regard.

Jesse Myers, the chief operating officer of investment firm Onramp, reminded his 50,100 Twitter followers about Bitcoin’s performance during the Covid-19 pandemic, highlighting that Bitcoin emerged as the victor in the previous round of economic stimulus.

He suggested that if the debt ceiling were increased, it could lead to a repetition of history where the Federal Reserve responds by printing additional money.

Also Read This Related: What Time Will Biden’s Debt Ceiling Deal Talks Restart?

Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.

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