U.S. ‘Tentative’ debt limit agreement reached after Biden Talks
American Vice President Joe Biden has encouraged Congress to “pass the agreement right away.”
Reports indicate that President Joe Biden and House Majority Leader Kevin McCarthy have struck an “agreement in principle” to increase the federal government’s multitrillion-dollar debt limit, reducing fears of a possible default by early June.
Reuters reported on May 28 that two people with knowledge of the discussions said that Biden and McCarthy had achieved a “tentative” deal during a 90-minute phone conversation on May 27 to increase the $31.4 trillion debt limit.
After the article’s original publication, Biden acknowledged on Twitter the existence of an “agreement in principle,” noting that it would avoid the United States from experiencing a “catastrophic default.”
Biden said, “over the next day”, “the agreement will go to the U.S. House of Representatives and Senate.” McCarthy, meanwhile, used Twitter to announce the deal in principle and accuse Biden of having “wasted time and refused to negotiate for months.”
“Although the exact details of the deal were not immediately available,” Reuters claimed that an agreement to restrict U.S. government expenditure for the next two years had been reached, with the exception of spending for national security.
This comes after U.S. Treasury Secretary Janet Yellen issued an urgent caution about the possibility of a default on June 1 if the debt ceiling isn’t postponed or increased, pleading with Congress to “act as soon as possible.”
Several experts have recently expressed agreement that a debt limit increase would lead to more investment in Bitcoin.
Former Wall Street trader MacroJack tweeted on May 17 that the current discussions on raising the U.S. debt limit are “all show.”
He said the currency would be “printed into oblivion,” so people should invest in “hard assets,” calling Bitcoin the “fastest horse in the race.”
When the COVID-19 epidemic hit, Jesse Myers, COO of investment company Onramp, tweeted to his 50,100 followers, “Bitcoin was the winner during the last round of stimulus.”
He said that if the debt limit were lifted, the Federal Reserve would be forced to create additional money, leading to a recurrence of previous events.