HomeWorldThe US House of Representatives' Speaker calls for action to prevent default.

The US House of Representatives’ Speaker calls for action to prevent default.

Washington, May 27 – House Speaker Kevin McCarthy said the executive and legislative branches of government are close to an agreement that would avoid default in the United States.
Without congressional approval to expand borrowing limits, the US administration risks being unable to service its financial obligations as early as next month.
McCarthy told reporters while negotiating teams continue to work on a compromise, “I feel we’re closer to an agreement now … I see progress.”
NBC quoted an unnamed source in the ruling Democratic Party as saying that the parties were “very close” to an agreement. He did not rule out reaching agreements early Saturday, but there are no plans to announce them immediately.
Republicans are linking their agreement to raise the debt ceiling to the White House’s agreement to limit spending in the budget. According to CNN, the compromise could include lifting restrictions on borrowing for two years while capping growth in spending excluding defense and veterans.
Yesterday, the Ministry of Finance announced that without increasing the debt ceiling, the default would occur on June 5, and not on June 1 as expected. The Congressional Budget Office has calculated that if the administration continues through June 15, quarterly tax returns will delay a default until at least the end of July.

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Tyler Hromadka
Tyler Hromadka
Tyler is working as the Author at World Weekly News. He has a love for writing and have been writing for a few years now as a free-lancer.

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