Before this deal happened, the global economy was in panic due to the possible default of America,Image Credit source: Social Media
If the debt limit (debt ceiling) was not increased in America, then after June 5, America would have been declared a defaulter. Now an agreement has been reached between President Joe Biden’s government and the Republican Party, which has a strong position in the Senate, to increase the debt ceiling. But along with this, questions have also started to arise that whether the danger of a possible recession in front of the world has also been averted?
In fact, before this deal was done, the global economy was in fear about the possible default of America, because the US Treasury Secretary Janet Yellen had warned about it. It was he who had said that America would become a defaulter after June 5. Now an agreement has been reached between Joe Biden and House Speaker Kevin McCarthy.
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relief for two years
After the formation of this agreement, the US government has got a relief of about 2 years. With this, the debt limit of the government has increased to $31.4 trillion (about Rs 25,92,53,472 crore). According to the deal between the Republicans and the White House, the government will have to keep its non-defense at the current level for the next two years.
According to the news of Reuters, Joe Biden has called it an important step. He says that along with reducing the expenditure, it will help in running some important schemes for the working people in the country and ensuring economic growth for everyone.
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Will you get rid of recession?
Regarding America’s debt limit, market experts believe that it will give immediate relief, but for the long term, the government will have to do more work. Before increasing the debt limit, the condition was that America was short of cash and had to cancel even President Joe Biden’s foreign tour.
The threat of recession has been averted from the face of the world, experts refrain from saying anything clear about it. Let us tell you that if America still defaults or there is an effect of recession, then the global stock markets will collapse. All the countries of the world will not be able to escape from this.