(AmericanProsperity.com) – US President Joe Biden announced on Sunday he reached a budget agreement with House Speaker and California Republican Kevin McCarthy. This way, the United States prevents defaulting on its debt, which economic analysts said would have caused unprecedented chaos in the country’s economy.
In a speech at the White House, the commander-in-chief said this deal with McCarthy officially eliminates the “threat of catastrophic default.” He also said that this debt ceiling agreement represents a serious compromise where no negotiation party got “everything they wanted.” The president also said during his speech that this deal prevents what could have been “the worst possible crisis” and defaulting for the first time.
The debt ceiling agreement, which was reached on Sunday morning, comes a couple of days before a government default. Treasury Secretary Janet Yellen told lawmakers earlier this month that the United States would officially default on its debt on June 1st. Experts said back then that Yellen’s remarks were good news, as they gave President Biden and the House Speaker enough time to reach a deal.
After his speech, reporters asked the president different questions about the deal. One of them asked what he had to say to Democrats who claimed he had to make some concessions, to which the president responded, “They’ll find, I didn’t.”
According to different reports, a default would have caused such a massive crisis that it would have sparked a financial crisis all over the world. Financial markets would freeze up and millions of Americans would have lost their jobs, raising the unemployment rate to unprecedented levels. Moreover, a default would have made the stock-market plunge, which could have erased trillions of dollars.
Despite the agreement, members of the Democratic Party criticized the President, as they said he gave too many concessions to the House Speaker and the GOP. The same happened with McCarthy, with many Republicans claiming President Biden got most of what he wanted.
Copyright 2023, AmericanProsperity.com