US debt ceiling deal: No US default as Biden, McCarthy tango in balancing act
The agreement is a mixed bag for Democrats and Republicans and needs to pass Congress
By News Desk
Published - May 30, 2023, 05:54 AM ET
Last Updated - Aug 12, 2024, 04:54 AM EDT
President Joe Biden has asked Congress to vote on a deal to suspend the government borrowing limit. The temporary removal of the debt ceiling will prevent a default on US debt repayments that could have been catastrophic for the US and world economies. Biden’s Democratic party and Republicans led by House Speaker Kevin McCarthy were locked in long drawn-out talks to avert a default. GOP has a slender majority in the House and can block any legislation even if the Democrat-dominated Senate passes it.
What is the US debt ceiling deal?
Read more: Debt ceiling explained: Why it's a struggle in Washington and how the impasse could end
The agreement was accepted by both parties on May 28 night. The deal, if accepted by Congress, will allow the federal government to borrow money until well after the 2024 presidential election due in November.
