According to sources, the US is going to raise the debt ceiling for two years. More details are still unknown. The bill is expected to be passed on Sunday. Congress will vote on Wednesday. If there are enough votes, the deal is final.
Biden says the bill is a “compromise, which means not everyone gets what they want.” But he said the plan would prevent a “catastrophic bankruptcy” that would lead to “an economic recession, devastated pensions and millions of lost jobs.”
If no deal is reached between Republicans and Democrats, America will run out of money on June 5. This will lead to a major financial crisis worldwide. A large part of the US government could also come to a standstill.
Raising the debt ceiling is routine in the US. This pattern is different because of tensions between Republicans and Democrats. Earlier this week, there appeared to be progress in talks between the two sides. But they still differ in some important respects.
