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Biden reaches ‘tentative’ agreement on US debt ceiling: Report

The US House of Representatives and US Senate have been asked by US President Joe Biden to “enter into force immediately”.

President Joe Biden of the United States and Republican Kevin McCarthy are said to have reached an “agreement in principle” to increase the multi-trillion dollar debt ceiling for the federal government amid growing concerns over a possible default by early June.

A “tentative” agreement to raise the $31.4 trillion debt ceiling was reached after a 90-minute phone call between Biden and McCarthy on May 27, according to a May 28 story from Reuters, citing two people involved in the deliberations.

After these items were published, Biden later verified on Twitter that there was “a deal in principle”, stating that doing so would prevent the United States from suffering a “catastrophic failure”.

The agreement will be submitted to the US House and Senate “the next day,” according to Biden. He implored both chambers to “conclude the agreement immediately.”

McCarthy also announced the deal on Twitter at the same time, claiming that Biden was “wasting his time and refusing to negotiate for months.”

According to Reuters, despite the fact that “exact details of the deal were not immediately available,” decisions have been made to limit government spending in the United States for the next two years, with the exception of costs related to national security.

According to a person familiar with the negotiations, “negotiators have agreed to cap non-defense policy spending at 2023 levels for one year and increase it by 1% in 2025.”

This came shortly after US Treasury Secretary Janet Yellen urged Congress to “act as soon as possible” and warned that if the debt limit was not suspended or raised, a default could occur as soon as June 1.

The US Congressional Budget Office (CBO) also released a report on May 12 highlighting a major risk that existed if the debt ceiling was 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 the same belief that raising the debt ceiling could result in increased investment in ticker Bitcoin BTC falling $27,215 Former Wall Street trader MacroJack warned his followers in a tweet on May 17 that discussion of raising the US debt ceiling is “all show.” “.

As the dollar would be “printed into oblivion”, he emphasized the need to own tangible assets, calling Bitcoin “the fastest horse in the race”.

In the aftermath of the Covid-19 Pandemic, Jesse Myers, chief operating officer of investment firm Onramp, reminded his 50,100 Twitter followers of what had happened, saying that “Bitcoin was the winner during the last round of stimulus.

He suggested that if the debt ceiling were raised to force the Federal Reserve to print more money, history might repeat itself.

Post Biden reaches ‘tentative’ agreement on US debt ceiling: Report first appeared in BTC Wires.

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