BIDEN: A Settlement On Raising The Debt Ceiling Will Prevent A Catastrophic Default

INA-  SOURCES

US President Joe Biden said Saturday’s agreement on a draft bill on raising the government’s debt ceiling would prevent a “catastrophic default.”
The Democratic president added that the bill represents “a compromise that means no one will get what they want.” But he stressed that the agreement “prevents what could have been a catastrophic default leading to an economic recession, the destruction of retirement accounts and the loss of millions of jobs.”
The Speaker of the US House of Representatives, Kevin McCarthy, has confirmed that a preliminary agreement has been reached with the White House on raising the government debt ceiling, and is expected to be voted on in Congress on Wednesday.
McCarthy said he will speak again to President Joe Biden Sunday and oversee the final wording of the bill, adding that the House of Representatives “will vote on it Wednesday.”
The agreement will allow deferring the risk of default for two years, until the next presidential elections.
According to updated estimates by Treasury Secretary Janet Yellen, this unprecedented scenario for the world’s largest economy to default on its debts could happen as of June 5th, after she had previously indicated that it could happen on June 1st.


SOURCE: GLOBE ECHO