President Joe Biden and House majority leader Representative Kevin McCarthy have reportedly reached an “agreement in principle” to raise the US debt ceiling, aiming to address concerns of a potential default. The tentative deal was established through a phone call between Biden and McCarthy and is now awaiting approval from the US House of Representatives and Senate.
Although specific details of the agreement are not immediately available, it is anticipated to enforce a cap on non-defense discretionary spending at 2023 levels for one year, with a 1% increase in 2025. The urgency to reach a resolution arises from Treasury Secretary Janet Yellen’s warning about the looming risk of default if the debt limit remains unchanged. Analysts speculate that raising the debt ceiling could result in an influx of capital into Bitcoin, similar to previous instances during economic stimulus measures. This development underscores the ongoing efforts to prevent a catastrophic default and ensure the stability of the US economy.
