US President Joe Biden and Republican House Speaker Kevin McCarthy have reached a tentative deal to raise the government’s debt ceiling despite persisting hostile difference between the two leaders and their respective parties.
Despite the breakthrough, McCarthy cautioned on Saturday that there was "still a lot of work to do" in getting Congress to give its backing, adding, "After weeks of negotiations we have come to an agreement in principle."
McCarthy, who spoke with Biden on Saturday to close the deal, said he would consult again with the US president on Sunday and oversee final drafting of the bill without elaborating on specifics. The House will "then be voting on it on Wednesday."
"I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we've come to an agreement in principle that is worthy of the American people," he wrote in a Twitter post, unveiling the persisting hostilities between the two leaders that reflect surging bitterness among members of the two dominant political parties.
I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we've come to an agreement in principle that is worthy of the American people.— Kevin McCarthy (@SpeakerMcCarthy) May 28, 2023
I'll deliver a statement at 9:10pm ET. Watch here:https://t.co/vmn31INPH5
Biden also went on Twitter to declare on Saturday that the opposing sides had reached a tentative deal after months of disputes, claiming: "It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone."
Biden further claimed in his public statement that the deal was "good news for the American people, because it prevents what could have been a catastrophic default and would have led to an economic recession, retirement accounts devastated, and millions of jobs lost."
Earlier this evening, Speaker McCarthy and I reached a budget agreement in principle.— President Biden (@POTUS) May 28, 2023
It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone. And, the agreement protects my and…
The statements by the two leaders about coming up with an agreement that would benefit American people are intended for publicity and lack any details.
McCarthy also claimed in a press briefing minutes after his Twitter post that the US government new budget bill includes "historic reductions in spending, consequential reforms, will lift people out of poverty into the workforce and reign in government overreach."
His remarks, however, appear to suggest that the Democrats have likely given in to some of the Republican demands for spending cuts in order to reach an agreement on the rise in the debt ceiling.
"There are no new taxes, no new government programs, there's a lot more within the bill," McCarthy further insisted.
The tentative deal between the two rival and dominant US political parties came just a day after Russia's Duma Speaker Vyacheslav Volodin emphasized that the US had planned schemes to defraud other nations through its whopping $31.4 trillion debt.
The top Russian lawmaker on Friday also likened the US default to a global pyramid scheme headed for an inevitable collapse
Prior to their agreement, US Treasury Secretary Janet Yellen had repeatedly warned that the US was on track for a debt default as early as June 5.
The White House Council of Economic Advisors also claimed that the possible impact of a US debt default could be a worldwide recession, frozen credit markets across the globe and stock markets crashing, in addition to mass layoffs.