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US Government Reaches Tentative Agreement on Debt Deal, Reassuring Markets

  • The final bill will be introduced in Congress on May 31
  • Unconfirmed reports say Republicans have received assurances from the White House to cut spending
  • So budget allocations for everything except defense will remain the same over the next two years

On Saturday, May 27, Joe Biden and House Speaker Kevin McCarthy held an hour and a half of talks on the “debt” deal.

The result was a tentative agreement to raise the public debt limit, which should reassure markets and dispel rumors of a possible default.

“After weeks of negotiations, we have reached agreement on the main points.

We still have a lot of work to do, but I believe the result of these negotiations is worthy of American citizens,” McCarthy said.. Video provided by Reuters.

The final bill will come up for a vote Wednesday, May 31. Its details are not yet known.

But Bloomberg quoted a source as saying that Republicans have “sold” the demand for spending guarantees.

For the next two years, all budget allocations, except for defense, will remain at the same level.

The agreement will remain in effect until January 2025.. Thus, the scenario with a possible default can be repeated after the next presidential election.

Why this situation threatened the cryptocurrency market. Now that a tentative deal has been reached, the bitcoin exchange rate may fall.