WACO, Texas (FOX 44) – All eyes are on Washington, after a 4 day extension was given for congress to arrive at a decision for the debt ceiling.
As of Saturday night, President Joe Biden, House Speaker Kevin McCarthy and their negotiators have reached a tentative agreement to raise the debt ceiling.
AS OF SATURDAY NIGHT — PRESIDENT JOE BIDEN, HOUSE SPEAKER KEVIN MCCARTHY AND THEIR NEGOTIATORS HAVE REACHED A TENATIVE AGREEMENT TO RAISE THE DEBT CEILING.
McCarthy says, “So it’s not 100% what everybody wants. But when you look, the country is going to be stronger. This is going to be transformational, where Congress is literally going to vote to spend less money this year than we spent last year.”
The tentative agreement includes two-year appropriations deal and a two-year debt limit extension. In hopes of effectively resolving the problem until after the 2024 presidential election.
On Friday, Treasury Secretary, Janet Yellen announced the new deadline is June 5th. Providing 4 extra days for Congress to work out a deal before the looming government default.
I asked Ray Perryman, President of local financial economic research company, The Perryman Group what this means for the everyday American if Washington can’t come to an agreement?
“I think we’ll have a fairly significant recession. We’ll see a lot of layoffs. They certainly have to pay interest on the debt… beyond that, you would think they would pay things like military salaries, retirees and that sort of thing first. But basically, anyone that has a payment due from the federal government by themselves in jeopardy,” says Perryman.
Biden and McCarthy’s “agreement in principle” is just a start. Now Congress must race to approve the spending cut package, appeasing both sides of the aisle before June 5th.
The debt ceiling deal still needs to be converted into legislative language and pass both the republican led house and the democratic controlled Senate.