On Saturday, Treasury Secretary Janet Yellen extended the government shutdown deadline to June 5.
The US debt limit standoff has apparently eased, averting a disastrous government shutdown and default, as the warring factions have reached an agreement on the contentious issue of spending cuts.
Under the deal to increase the US government’s debt limit for two years, the government spending will be capped as per the Republicans‘ demand. The agreement was reached in a phone call Saturday between President Joe Biden and House Speaker Kevin McCarthy.Agreement in Principle
„After weeks of negotiations, we have come to an agreement in principle. We still have a lot of work to do but I believe this is an agreement in principle that is worthy of the American people,“ McCarthy said.
Biden said the demands of the Democrats have been upheld under the agreement as well. „The agreement protects my and congressional Democrats‘ key priorities and legislative accomplishments,“ Biden said, according to CNN.
