The President of the United States, Joe Biden, affirmed that the agreement on the debt ceiling with the leader of the Republican majority in the House of Representatives of Congress, Kevin McCarthy, is ready for debate in the Lower House, arguing the legislators have approved it.

“President McCarthy and I have reached a bipartisan budget agreement that will prevent the worst possible crisis: a default for the first time in our nation’s history,” said the US president.

Biden indicated that “this agreement is good news for the American people,” and urged “strongly both chambers to pass this agreement, let’s keep moving forward in meeting our obligations and building the strongest economy in history.” .

In response to questions from journalists, he explained that “it is a really important step forward” because it not only “eliminates the threat of a catastrophic default”, but also “protects the economic recovery that we have worked so hard to achieve” and “represents a commitment “: “No one has achieved everything they wanted, but that is the responsibility of governing.”

On the other hand, the president denied that he had backtracked on his promise not to negotiate the debt ceiling because the negotiations have been limited to “issues of spending to reach the debt ceiling.” “They want to try to make it appear that I have made concessions on the debt ceiling. It is not like that. I made a compromise on the budget,” he concluded.

McCarthy, who spoke to Biden by phone on Sunday, released the full text of the bill, which spans a total of 99 pages and increases the debt limit for the next two years. Among several provisions, it strengthens work requirements in public assistance programs and rescinds unused Covid-19 funds.

“This responsible debt limit agreement reduces overall spending, reduces non-defense spending and reduces the deficit, unlike any debt limit increase in recent history,” McCarthy said.

Source: dpa

(Reference image source: Headway, Unsplash)

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La entrada Biden assured that the US debt ceiling agreement is ready apareció primero en Bitfinance.

The United States Government runs the risk of not being able to meet all of its financial obligations as soon as June 1 if Congress does not raise or suspend the limit for the debt ceiling, as warned by the Secretary of the US Treasury, Janet Yellen.

“We will not be able to continue to meet all government obligations in early June, and possibly as soon as June 1, if Congress does not raise or suspend the debt limit before that date,” warns the head of the US Treasury. in a letter sent to House Speaker Kevin McCarthy.

In this sense, Yellen stresses that her estimate is based on currently available data, since federal revenues and expenditures are inherently variable, and the actual date on which the Treasury will exhaust the established extraordinary measures “could be several weeks later than these estimates”.

“It is impossible to predict with certainty the exact date on which the Treasury will not be able to pay government bills,” acknowledges the economist, although, given current projections, for the Treasury secretary “it is imperative that Congress act as soon as possible” in a way that provides certainty in the longer term that the Government will continue to meet its payments.

“We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious damage to business and consumer confidence, increase borrowing costs in the short term for taxpayers and negatively affect the credit rating of the United States,” says Yellen.

In this sense, the former president of the Federal Reserve of the United States warns that if Congress does not increase the debt limit, it would cause serious difficulties for American families, it would damage the position of world leadership of the country, and it would raise doubts about its ability to defend their national security interests.

Source: dpa

(Reference image source: Brandon Mowinkel, Unsplash)

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La entrada Yellen warns that the US will not be able to meet its obligations in June if the debt ceiling is not raised apareció primero en Bitfinance.