US reaches deal to avoid default

US President Joe Biden.Photo: Gints Ivuskans

US President Joe Biden and Republican Speaker Kevin McCarthy have reached an agreement in principle on a budget that will avoid a default. This is stated in a statement from the White House, writes “Medusa”.

“This is an important step forward in reducing costs while protecting critical programs for working citizens and developing an economy for all. The agreement is a compromise, meaning that not everyone gets what they want. This is the responsibility of management,” Biden said. “This agreement is good news for the American people because it prevents what could be a catastrophic default and lead to an economic downturn, emptying retirement accounts and losing millions of jobs.”

The text of the document will be published later on May 28. It is expected to be put to a vote in the US Congress on May 31.

According to The New York Times, the two-year budget agreement lifts the US national debt ceiling, cutting and limiting some government spending for the same period.

As US Treasury Secretary Janet Yellen previously stated, due to the achievement of the national debt ceiling, the US authorities may stop paying their obligations by June 5 and declare a default.

Source: by

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