The US had until June 5 to raise the country’s debt ceiling and avoid a default with consequences for the world economy. In 90 minutes on the phone, Biden and McCarthy hit it off. Missing congress ok.
He was saved from default by a 90-minute phone call between Joe Biden and Kevin McCarthy on Saturday night. With just a few days to go before the US federal government technically goes bankrupt, the US president and the majority leader of the Republican Party in the House of Representatives will have reached an agreement in principle in that hour and a half by phone.
The news was advanced by a source familiar with the negotiations to the Reuters agency.
True, whatever deal the two have reached has yet to meet the approval of a highly divided US Congress. Which concretely means that Republican McCarthy will need the support of Democratic members to pass the proposal in the House, given the narrow majority of Republicans in the House of Representatives.
The deadline to raise the country’s debt ceiling and avoid a default had been extended to June 5, so the news comes just over a week before the US government runs out of funds to pay all its bills. . Something that, according to the predictions of most economists, would have disastrous consequences for the US economy and for global markets, causing the loss of millions of jobs and a significant reduction in US gross domestic product.
“The only way forward is with a bipartisan agreement,” the US president said a few days ago, setting aside the possibility of trying a unilateral solution from the White House and eluding Congressional authorization. The deal, after all, only took a phone call. Although long.
Of the details of the agreement, very little is known.