Biden and Republicans agree to expand spending cap and prevent default

The president of U.S, Joe Biden, and Republican lawmakers reached an agreement on an increase in the US spending cap. The information was confirmed by the Republican leader in Congress, Kevin McCarthy, last Saturday night, the 27th, after the imminent risk that the country ran of a default on the payment of its debts. Last Friday, the Treasury Department had informed that the United States government would not have the funds to pay all its bills from the next 5th of June, in case the agreement did not go through. The US public debt limit of US$ 31 trillion (about R$ 153 trillion) was reached on January 19 and, since the day in question, there have been no moves to align the White House accounts. In a divided Congress with a simple Republican majority in the House and a simple Democratic majority in the Senate, biden started trying, since last week, to articulate an agreement so that the US spending ceiling would increase. Republicans sought the inclusion of spending cuts in the measure and Democrats were reticent about the measure. By yielding, the agreement was signed on the possibility of the spending ceiling increasing in the next two years, provided that a spending cut is promoted by the current government. The possibility of the United States defaulting generated a negative expectation among specialists, as North American economists began to disclose that a possible debt default would cause the stock market to suffer a 45% devaluation.