Biden and McCarthy reach preliminary agreement to raise the debt ceiling

The President of the United States, Joe Bidenand the main republican congressional, Kevin McCarthy, They reached this Saturday a preliminary agreement to raise the debt ceiling from the federal government, of 31.4 trillion dollars, putting an end to a stagnation of months.

However, the deal was described in terms that indicated it might not be absolute, and without any celebration, an indication of the sour tenor of the negotiations and the difficult road ahead in Congress before the United States is left. no money to pay his debts at the beginning of June.

“I just got off the phone with the president. After he wasted his time and refused to negotiate for months, we have reached an agreement in principle,” McCarthy tweeted.

the agreement would raise the debt limit for two yearswhile limiting spending during that time, and includes some work requirements for programs targeting the poor.

Biden and McCarthy spoke on the phone for 90 minutes Saturday night to discuss the deal.

The deal would avoid an economy-shattering default, as long as they can get it through a deeply divided Congress before the Treasury Department runs out of money to cover all its obligations, which it warned Friday will happen on May 5. June if the debt ceiling is not raised.

“We still have work to do tonight to finish writing it,” McCarthy told reporters on Capitol Hill.

He said he hopes to finish writing the bill on Sunday, then speak with Biden and have a vote on the deal on Wednesday.

Hardline Republicans in the House of Representatives have threatened to block any bill that falls short of their expectations, including sharp spending cuts.

While progressive Democrats have also warned that they will deny their support for some of the commitments raised, especially around the imposition of new labor requirements in federal anti-poverty programs.

Republicans control the House of Representatives by a 222-213 margin, while Democrats hold a 51-49 majority in the Senate, leaving a narrow path to signing any agreement between the Democratic president and the Republican leader into law.

Republicans have tried to slash government spending over the next 10 years to slow the growth of US debt, which currently equals the economy's annual output. But the tentative deal is likely to fall short of its goal. (Reuters)