Agreement in sight on dispute over US debt ceiling

Joe Biden (r) and Kevin McCarthy, Speaker of the House

Biden’s Democrats need the support of Republicans to reach an agreement.

(Photo: dpa)

Washington In the United States, the government of President Joe Biden, together with representatives of the Republicans in the House of Representatives, has apparently come a big step closer to an agreement on raising the debt ceiling. This was reported by the Reuters news agency, citing an insider. The New York Times also reported on a possible agreement.

A government official familiar with the talks told Reuters late Thursday evening (local time) that the parties are said to have agreed to raise the current debt ceiling of $31.4 trillion for two years. At the same time, however, spending on all areas with the exception of the military and veterans is to be limited.

The White House is considering scaling back its plan to increase funding for the Internal Revenue Service (IRS) to hire more auditors and target wealthy Americans, the insider said.

“The only way to move forward is with a bipartisan agreement. I believe we will come to an agreement that will allow us to move forward and protect hard-working Americans in this country,” US President Biden told reporters on Thursday. Before negotiations began, House Speaker Kevin McCarthy said, “We knew this wasn’t going to be easy.”

In Washington, there has been a debate about raising the federal debt ceiling from the current $31.4 trillion for weeks. To take this step, Biden’s Democrats need the support of Republicans, who hold a majority in the House of Representatives. Without an agreement, the US faces insolvency, which experts say could have serious consequences for the global economy.

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