White House forced to negotiate to avoid financial catastrophe

Washington correspondent

Both the left wing of the Democratic Party and the right-wing and populist wing of the Republican Party have reason to be disappointed by the outcome of the bargain between President Biden and Kevin McCarthy, Republican leader of the House of Representatives. The "deal" certainly limits Joe Biden's fiscal room for maneuver for his last year in office, but it hardly affects the heavy trend of rising spending and US public debt.

To fight the battle to raise the public debt ceiling that he had been anticipating for months, Joe Biden had thought he was in a much stronger position. The compromise painstakingly reached after weeks of negotiations still allows him to limit the deep spending cuts that Republicans dreamed of making in his expensive program. Apart from the major pension and health programs that are intact, non-military spending will be frozen next year and will not increase...

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