18:23 28 May 2023
Biden and McCarthy have reached an agreement on debt
The United States is on the brink of default. The government will run out of money in June. That's why President Joe Biden and House Speaker Kevin McCarthy have been negotiating a solution over the past few weeks to avoid this.
"I just spoke with the President on the phone. After wasting time and refusing negotiations for many months, we have reached an agreement that is worthy of Americans," McCarthy announced on May 27.
"The agreement is a compromise, which means not everyone got what they wanted. That's the responsibility of those in power," Biden stated.
The agreement includes raising the government's debt ceiling, which is currently at $31.4 trillion, for two years, while also reducing spending in the budgets for 2024 and 2025. At the same time, no new taxes will be introduced, which Democrats were insisting on. However, the solvency of the USA is still at risk.
