Joe Biden says he is “very optimistic” about possibility of debt ceiling deal
Shortly before leaving for his retirement home, Joe Biden was optimistic about debt ceiling agreements with GOP members of Congress, saying that “things are looking good.”
President Joe Biden, indicated that he was “very optimistic” about the possibility of a deal with the Republican Party to raise the debt ceiling soon.
“Things are looking good, I’m very optimistic,” said the Democratic leader before leaving by helicopter for Camp David, a presidential retreat.
Biden also said he hopes to know as soon as possible if they will be able to reach an agreement.
Meanwhile, Treasury Secretary Janet Yellen updated the deadline after which the United States could be pushed into default if Congress does not agree in advance to raise or suspend the debt ceiling.
Yellen informed Congress that the deadline would be June 5. Previously, the Treasury had indicated that the U.S. could be hit by a default as soon as June 1 arrives.
Talks between the Congressional Republican Party and the White House continued on Friday, with no official announcements that they had finally reached a compromise yet.
On Thursday night, several media outlets around the country, including The New York Times, revealed sources close to the meetings that a deal could be announced “soon.”
The potential deal would raise the debt ceiling for two years and impose caps on discretionary spending by the Biden Administration, except for military or veterans’ affairs, according to The New York Times.
Unlike the vast majority of countries, the United States can only borrow up to the limit set by Congress – the debt ceiling – which requires legislative agreement each time the country needs to raise it to meet its debts.
The current debt ceiling of $31.4 trillion was reached in January.