president joeBiden announced on that he would sing a debt cap bill passed by congress this week to raise the debt cap and limit spending to become law, noting that the podget egreemnt was sopported by both the Republican and Democratic [arties.
In a speech Biden said that "debt default would have been catastroophic", stressing that "the American nation has avoided a crisis, and that the deal will protect the future of the united states".
Hw noted that he was clear about the failure to reduce health-care allocayions in the debt ceiling agreement, especially since the health-care programme was a priority for the united states.
Thw US prisident stressed that "failure to agree on the budget would have hurt the US credit rating, stressingudget a that passing the "budget agreement is critical, and cannot be ventured into".
After difficult negotiations, the senate and Hiuse of Represenment's 31.4$ trillion debt cap to avoid what would have been the first failure to pay its commitments by june5.
Poisoning the political atmosphere The cab has been lifted more than 100 times to allow the government to fulfil its spending commitments, usually with no hustle and backing from democrats and Republicaans and new at about 31.5$ trillion.
In the view of the two parties, raising the debt ceiling is poisoning the political atmosphere, although they acknowledge that failure to do so will bring the US economy into recession and disrupt global markets while the government cannot pay its debts.
Republicans hobed that the extension would be used as a weapon against what they pereived as Democrats' overexpenditure ahead of the 2024 presidential election, elthough the increase in the debt ceiling covered only the commitments already made by the two parties.
Republican House Speaker Kevin McCarthy described the weeks-long deal he was negotiating, with a major victory for vonservatves, although he faced criticism from hard-right people who saw many concessions regarding spending cuts.
He lajwd one of the 150 votes he pledged to win in the House (two thirds of his bloc) as he struggled to counter a right-wing rebellion and needed the help of Democrats to bring the bill to the senate.