The White House and the US Congress reached an agreement on raising the debt ceiling

According to Al Jazeera, the White House and the US Congress reached an agreement on increasing the debt ceiling of the government.

Reuters, quoting its sources, has announced that the White House and Republicans in the House reached a tentative agreement to temporarily relieve the government of paying its debts and borrow more money instead of paying the debt, and actually increase the debt ceiling. This agreement actually authorizes the US government to incur more debt.

Kevin McCarthy, the Speaker of the US House of Representatives, also confirmed this agreement and said that a tentative and temporary agreement has been reached with the White House on increasing the US debt ceiling.

At the same time, the Speaker of the US House of Representatives added that the agreement on the debt ceiling includes the reduction of government expenses.

McCarthy, meanwhile, said the debt ceiling deal does not include any new taxes or programs, and is expected to vote on the debt ceiling increase bill on Wednesday.

Previously, US Treasury Secretary Janet Yellen had also warned that the United States will run out of cash by June 1 if Congress fails to raise or suspend the debt ceiling.

Yellen has also warned that if the country faces federal debt, this debt will cause an economic disaster in the country and may cause a big shock in the global economy, so in order to prevent this, President Joe Biden The US and Republican leaders in Congress agreed to consult.

It is worth noting that reaching the debt ceiling means that the US government is unable to borrow more money and this situation will cause the government to run out of liquidity and eventually shut down due to the lack of liquidity and required budget.

A few days ago, the head of the World Bank, David Malpass, warned that the possibility of a US default and deadlock in negotiations between the White House and Congress representatives will increase the problems facing the global economy. In this context, the “Economist” magazine also said in its report: “The American system, which is based on global laws and free markets, is shrinking.”