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President Joe Biden said the debt ceiling agreement reached late Saturday “prevents the worst possible crisis, a default.”
He said during a short press briefing on Sunday evening that the deal is a compromise. “Nobody gets everything they want.”
Biden said the agreement protects key priorities that “Democrats and I have worked long and hard for.” “I strongly urge both houses to pass this agreement,” he added.
Earlier on Sunday, US House of Representatives Speaker Kevin McCarthy said he believed a majority of Republicans would support the deal. And even before today’s press conference, President Biden He said He was confident that the bill would pass both the House and Senate to avoid default and a government shutdown.
At 7:08 PM ET, the US Dollar Index was up 0.1%, at 104.27. Futures for all three major US stock averages are shown in green, along with futures for the Standard & Poor’s Index up 0.4%Nasdaq +0.6%and daw +0.4%.
When asked at the briefing if getting rid of the debt limit through the Fourteenth Amendment could solve the problem, Biden said it would only lead to more controversy. He is still looking at the Fourteenth Amendment to assess whether the debt limit can be eliminated through this path at a later date.
Section 4 of the Fourteenth Amendment States: “The validity of the public debt of the United States, permitted by law…” shall not be questioned.
Some of the more conservative members of the Republican Party have already opposed the agreement. “Increasing the debt ceiling by $4 trillion with almost no cuts is not what we agreed upon,” Representative Ralph Norman said in a tweet.
Some progressive Democrats may come out against stricter labor requirements in the legislation for some food and cash aid recipients.
The bill is expected to come to the House of Representatives for a vote on Wednesday, May 31. If passed in the House of Representatives, the legislation will be brought to the Senate for a vote. Then President Biden needs to sign it into law. Treasury Secretary Janet Yellen estimated Friday that the department will run out of cash on Monday, June 5, if the debt ceiling is not raised or suspended by then.
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