The US government says they have reached a breakthrough deal on the debt and spending, just days before the so-called “date” when treasury secretary Janet Yellen warned of potential default. Yellen extended the default date from June 1st to June 5th late last week.
President Joe Biden announced the agreement on Friday that he said will reduce spending while protecting critical programs for working people and growing the economy. Biden added that the deal will prevent “what could have been a catastrophic default, leading to economic recession, retirement accounts devastated, and millions of jobs lost” – and urged both chambers to pass the agreement quickly.
The tentative deal needs approval from both the republican controlled house of representatives and the democrat-controlled senate. However, members from both parties expressed dissatisfaction during talks and encouraged their respective leaders to stand their ground. House leader Kevin McCarthy has pledged to give house members 72 hours to review the legislation before a vote. And in the senate, one lawmaker could delay approval for up to a week.