Corporates applaud US debt ceiling deal

The corporates in the US have applauded the debt ceiling deal reached between President Joe Biden and House Speaker Kevin McCarthy to  avert debt default.

The corporate houses have also urged Congress to quickly pass legislation without delay.

“With the US at risk of defaulting in less than 10 days, there is no time to spare. We urge members of Congress to give the legislation their strong support,” Josh Bolten, the CEO of the Business Roundtable and former chief of staff to President George W. Bush, said in a statement on Sunday.

Bolten applauded the agreement for not only raising the debt ceiling through January 1, 2025, but for making a down payment on permitting reform and taking steps towards putting America on a more sustainable fiscal trajectory. 

President Biden and McCarthy on Saturday reached a compromise to suspend the debt limit through January 2025 and keep non-defense spending roughly flat next year, with a 1% hike in 2025.

After this, the task of Biden government will be to get the legislation passed before a June 5 default deadline.

The House vote is expected to take place Wednesday.

Suzanne Clark, president and CEO of the US Chamber of Commerce, said in a separate statement that by reaching a compromise, Biden and congressional leaders have shown they can come together on a bipartisan basis and act in the best interests of our country.

“Members of Congress must finish the job and send the bill to the President’s desk to be signed into law without delay. The gravity of this moment cannot be overstated,” said Clark, who added the Chamber will consider this a “key vote” for lawmakers.

America’s National Association of Manufacturers (NAM) congratulated Biden, McCarthy and their lawmakers for reaching an agreement.

“Defaulting on our debt would create economic chaos, harming manufacturing workers and their families and jeopardizing our leadership in the world,” NAM CEO Jay Timmons said in a statement. “Congress should act quickly to pass this agreement and to demonstrate to Americans and to the world the continued strength of our institutions and our democracy.”

Biden is personally calling lawmakers to support the bill, while cabinet members and senior White House staff already had called at least 60 House Democrats by early Monday morning, a Democratic official said.

Both Biden and McCarthy have expressed confidence that the bill would be passed.