CNN: White House deals with US Congress will prevent default for at least two years
The agreement, under which the United States will prevent default, involves raising the ceiling on public debt in exchange for limiting federal spending. This was reported by CNN, citing an unnamed source.
The whistleblower revealed the details of the agreement to prevent default in the US and said that without the permission of the Congress for additional borrowing in early June, the authorities could not be able to fully fulfill their obligations.
“The agreement in principle raises the debt cap for two years and caps non-defense spending for 2024 around the current fiscal year and increases it by 1 percent in fiscal 2025,” a source close to the talks said.
Earlier, US President Joe Biden announced the prevention of a catastrophic default in the United States. “This agreement is good news for the American people, because it avoids what could be a catastrophic default and lead to an economic recession with the depletion of retirement savings and the loss of millions of jobs,” he said.