- The final bill will be presented to Congress on May 31.
- According to unconfirmed reports, Republicans received guarantees from the White House to cut spending
- So over the next two years, deductions from the budget for everything except the defense complex will remain at the same level.
On Saturday, May 27, Joe Biden and Speaker of the House of Representatives Kevin McCarthy held an hour and a half talks regarding a “debt” deal. The result was a preliminary agreement to raise the government debt limit, which should calm the markets and debunk rumors of a possible default.
“After long weeks of negotiations, we reached an agreement on the main points. We still have a lot of work to do, but I believe that the result of these negotiations is worthy of the citizens of America, ” noted McCarthy. Video courtesy of Reuters.
The final bill will be submitted for voting on Wednesday, May 31. Its details are still unknown.
However, the portal Bloomberg citing his source, he claims that the Republicans managed to “push through” the demand for guarantees for cost reductions. Over the next two years, all budget allocations, except for the defense complex, will remain at the same level.
The agreement will be valid until January 2025. Thus, the scenario with a possible default may be repeated after the next presidential election.
Recall that you can read everything about how this situation threatened the cryptocurrency market. Now that the preliminary deal has been reached, the price of bitcoin may fall.