Late Sunday evening, US President Joe Biden announced that he had reached an agreement with Kevin McCarthy, the Republican Speaker of the US House of Representatives (, to avoid bankruptcy for the United States.
Biden added that the agreement is "good news" for the American people, and called on Congress to pass the agreement immediately to increase the US debt ceiling until 2025 in exchange for a significant reduction in public spending.
The Hor IS scheduled to vote on the agreement the day after tomorrow, Wednesday.
The US Congress periodically sets a ceiling on public debt and determines how much money the government can borrow.
The US debt has now reached the prescribed ceiling, while the Treasury Department has resorted to financial reserves to pay off liabilities, because it cannot borrow again to pay outstanding loans.
It is noteworthy that US Treasury Secretary Janet Yellen has previously warned that without increasing the public debt ceiling by June 5, the United States will not be able to pay its financial obligations.
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