Background

With days remaining before a possible first government default, US President Joe Biden and House Speaker Kevin McCarthy reached a final deal Sunday on a deal to raise the country’s debt ceiling and worked to ensure enough Republican and Democrat votes to pass the measure next week.

Compromise Reached

The Democratic chairman and the Republican speaker spoke Sunday night as negotiators rushed to draft the text of the bill in so that lawmakers could revise compromises that neither the far right nor the left were likely to support. Instead, leaders are working to rally support from the political center as Congress races towards a vote before a June 5 deadline to avoid a devastating federal default, according to CNBC, which has been watched by Agency.

“The deal prevents the worst possible crisis, a default for the first time in our nation’s history,” said US President Joe Biden.

Bipartisan Support Needed

The president urged both sides in Congress to come together for a quick passage. “McCarthy and I made it clear from the start that the only via to follow is a bipartisan agreement,” he said.

Impact of Default

In the United States, a default could freeze financial markets and trigger an international financial crisis. Analysts say millions of jobs will disappear, debt and unemployment rates will soar and a stock market crash could sweep via trillions of dollars from household wealth. And that would crash the $24 trillion Treasury debt market.

Republican Party Response

McCarthy and his negotiators described the deal as meeting the Republican goal, even if it fell short of the sweeping spending cuts they sought.

McCarthy was also confident in his Capitol remarks: “In the end, people can look together to get through this.”

Critical Support Needed

However, bipartisan support will be needed to get congressional approval ahead of the expected June 5 government default on US debt.

New Democratic Coalition Support

On the other hand, a group of 100 moderates from the New Democratic Coalition gave a decisive nod of support on Sunday, saying in a statement of being confident that Biden and his team “have presented a viable, bipartisan solution to ending this crisis,” and we were working to ensure that the deal won Republican support. BOTH parties.

The coalition could offer enough support for McCarthy to replace right-wing members of his party who had voiced their opposition even before the bill’s wording was published.

Conclusion

It also takes the pressure off Biden, who is facing criticism from progressives.