But even with the House and Senate putting aside differences to finally rush through an agreement over the last week, the US economy’s reputation took a hit.
Ratings agency Fitch said Friday that it is keeping the United States’ “AAA” credit rating on negative watch, despite the deal.
CAMPAIGN BOOST?
The debt ceiling is usually an uncontroversial accounting maneuver approved yearly by Congress. It allows the government to keep borrowing money to pay for bills already incurred.
This year, hard-right Republicans dominating their party’s narrow majority in the House of Representatives, decided to use the must-pass vote as leverage for forcing Biden into accepting cuts to many Democratic spending priorities.
This triggered a test of political strength that threatened to end in chaos before the two sides agreed this week on raising the debt ceiling while freezing some budgetary spending in return – yet stopping well short of Republican demands for cuts.
Kevin McCarthy, the speaker of the Republican-led House, had touted the compromise Bill as a big victory for conservatives, although he faced a backlash from hardliners on the right who said he made too many concessions.
But Biden, who is campaigning for re-election in 2024, sees the dramatic resolution to the crisis as a win, showcasing his negotiating powers and his pitch to be the moderate voice in an increasingly extreme political landscape.
He burnished those credentials in the speech by going out of his way to praise McCarthy, a politician long loyal to former president Donald Trump – the man Biden defeated in 2020 and who is seeking his own return in 2024.
“I want to commend Speaker McCarthy. You know, he and I, we and our teams, were able to get along, get things done,” Biden said, calling the Republican negotiators “completely honest and respectful of one another.”
For all the latest world News Click Here
