Biden and McCarthy agree to extend debt ceiling for two years

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Washington, May 28 (Hindustan). US President Joe Biden and Speaker of the US House of Representatives Kevin McCarthy have agreed on Saturday an important agreement in principle to raise the debt ceiling. Its duration will be of two years.

The current debt ceiling is $31.4 trillion. A provision has been made for drastic reduction and capping of some government expenditure during this two-year period. This agreement is being considered as a major success of the marathon brainstorming of crisis talks. It is necessary to pass this agreement in the House of Representatives before June 5.

Republican members are in the majority in the House of Representatives. Right-wing MPs demanded bigger budget cuts than raising the borrowing limit. If the new agreement passes, an effective cap on federal spending is possible. Kevin McCarthy has said that it is expected that it will be able to break the fiscal impasse and the country will get rid of the economic crisis.