Biden relieved debt ceiling crisis avoided from Oval Office.

Biden declares “crisis averted” in Oval Office address

By Jeff Mason and Trevor Hunnicutt

In his first address from the Oval Office, U.S. President Joe Biden announced the passage of a bill to suspend the U.S. debt ceiling, avoiding economic catastrophe. Biden used the moment to plead with Americans to bridge their divides, saying his compromise with top Congress Republican Kevin McCarthy showed what could be done.

“No matter how tough our politics gets, we need to see each other not as adversaries but as fellow Americans,” he said, asking Americans to “stop shouting, lower the temperature and work together to pursue progress.”

Biden, a Democrat, said he would sign the bill into law on Saturday, concluding months of uncertainty and averting what would have been a first-ever U.S. default as early as June 5.

“It was critical to reach an agreement, and it’s very good news for the American people. No one got everything they wanted. But the American people got what they needed,” Biden said while sitting at the historic “Resolute Desk” in the presidential office.

After nail-biting negotiations, both the Senate and the House of Representatives passed a bill this week that suspends the government’s $31.4 trillion debt ceiling.

“The final vote in both chambers was overwhelming,” Biden said.

Biden said to preserve U.S. economic progress it was critical to keep the country’s full faith and credit intact. “The stakes could not have been higher,” Biden said.

Republicans and Democrats work together

The president noted other bipartisan bills he has signed and offered praise to McCarthy, the speaker of the House of Representatives, who was his primary negotiating partner.

“We were able to get along, get things done,” Biden said. “Both sides operated in good faith.”

Republicans refused to increase the debt ceiling for months, asking Biden and Democrats to cut spending in the 2024 budget in return. The White House asked for a clean debt ceiling deal before starting negotiations. Ultimately, Biden and McCarthy cobbled together a last-minute deal that suspends the debt limit until January of 2025 and caps spending.

Presidential power and authority

U.S. presidents have generally reserved an address from the Oval Office for the most significant and dramatic of events. Biden’s Friday night address is his first from the Oval Office, a setting that highlights the power and authority of the presidency, as Biden seeks a second term against a growing field of Republican candidates.

(Reporting by Jeff Mason and Trevor Hunnicutt; Editing by Heather Timmons, Alistair Bell and Diane Craft)