published by, Shankhneel Sarkar
Last Update: June 03, 2023, 08:54 AM IST
Washington DC, United States of America (USA)
US President Joe Biden addresses the nation on averting default and bipartisan budget agreement in the Oval Office of the White House in Washington, DC. (Image: Reuters)
Biden said in his speech to the nation that America appears more optimistic and thanked both Democrats and Republicans for saving America from collapse.
US President Joe Biden told Americans on Friday in a rare Oval Office address that the debt ceiling bill passed by Congress after weeks of wrangling saved the country from “economic collapse”.
Speaking from behind the historic Resolute Desk on live primetime television, Biden said the deal that resolved the impasse between Democrats and Republicans was a compromise where “no one got everything they wanted.”
“We averted an economic crisis and an economic collapse,” he said, adding, “The stakes could not have been higher.”
Biden said he would sign the bill, which authorizes the government to extend the so-called debt ceiling and renew borrowing, into law on Saturday.
The US Treasury Department warned that the country could default on its $31 trillion debt if the debt ceiling is blocked beyond Monday. A default would likely cause market panic, huge job losses and a recession, with global ramifications.
“Nothing could have been more devastating,” Biden said.
Oval Office addresses have always been reserved by presidents for moments of unique national danger or importance.
Biden used the occasion to project a confident, calm tone. Sprinkling his speech with laughter and smiles, he praised his opponents for speaking in good faith and promised Americans that he had never felt more optimistic.
Biden said Congress now preserved “the full faith and credit of the United States of America”.
But despite the House and Senate overcoming differences and finally reaching an agreement last week, the US economy’s reputation took a hit.
Ratings agency Fitch said on Friday it was keeping the United States’ “AAA” credit rating on negative watch despite the deal.
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The debt ceiling is a controversial accounting maneuver typically approved annually by Congress. It allows the government to borrow money to pay for bills it has already incurred.
This year, hard-right Republicans who dominate their party’s narrow majority in the House of Representatives decided to use the must-pass vote to force Biden to accept cuts to several Democratic spending priorities.
It launched a test of political strength that threatened to end in chaos, before the two sides agreed this week to raise the debt ceiling, while in return freezing some budgetary spending – yet to be cut Well stalled Republican demands.
Republican-led Speaker of the House Kevin McCarthy touted the compromise bill as a major victory for conservatives, though he faced opposition from right-wing hardliners who said he made too many concessions.
But Biden, who is campaigning for re-election in 2024, sees the dramatic resolution of the crisis as a victory, showcasing his negotiating powers and his pitch as a moderate voice in an increasingly extreme political landscape. We do.
He went out of his way to praise McCarthy and burnish those credentials in the speech, which has long been loyal to former President Donald Trump — the man Joe Biden defeated in 2020 and who is seeking his reelection in 2024. Used to be.
“I want to commend Speaker McCarthy. You know, he and I, we and our teams, were able to work,” Biden told Republican negotiators, “being completely honest and respecting each other.”
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – AFP,
