Washington: In a rare Oval Office address, US President Joe Biden claimed on Friday that the debt ceiling bill passed by Congress following weeks of wrangling prevented the nation from "economic collapse."

On live primetime television, Biden said that the agreement ending the standoff between Democrats and Republicans was a compromise where "no one got everything they wanted." Biden was speaking from behind the iconic Resolute Desk. The stakes "could not have been higher," he said, adding that "we avoided an economic crisis and an economic collapse."

According to Biden, the legislation allowing the government to raise its borrowing limits and extend the so-called debt ceiling will be signed into law on Saturday.

Also Read: With Internal matters, Power struggle at Afghan embassy, Details here

The US Treasury Department had issued a warning that the nation might experience a $31 trillion debt default if the debt ceiling was not raised by Monday. A default would have probably resulted in market panic, significant job losses, and a global recession.

Nothing could have been more disastrous, according to Biden.
 Presidents have historically saved their Oval Office speeches for important or unique national crises.

Also Read:  Daughter said to her crying mother after stabbing her 9-year-old brother- 'I'm Sorry Mummy'

Biden made use of the situation to strike a comforting, composed tone. He sprinkled laughter and smiles throughout his speech as he thanked his adversaries for engaging in sincere negotiations and assured Americans that he was feeling more upbeat than ever.
According to Biden, Congress has successfully maintained "the full faith and credit of the United States."

The US economy's reputation suffered despite the House and Senate setting aside their differences to swiftly pass an agreement over the past week.

Despite the agreement, the ratings agency Fitch stated on Friday that it is maintaining a negative watch on the United States' "AAA" credit rating.

The debt ceiling is typically an uncontroversial accounting strategy that Congress approves each year. It enables the government to continue borrowing money to cover existing debts.

Hard-right Republicans decided to use the must-pass vote as leverage to coerce Biden into accepting cuts to many Democratic spending priorities this year, taking advantage of their party's razor-thin majority in the House of Representatives.

This led to a test of political will that appeared to be headed for chaos before the two sides this week reached an agreement on raising the debt ceiling in exchange for freezing some budgetary spending, stopping far short of Republican demands for cuts.

.The compromise bill was hailed as a major victory for conservatives by Kevin McCarthy, speaker of the Republican-controlled House, despite criticism from hard-liners on the right who claimed he made too many concessions.

However, Biden, who is running for re-election in 2024, views the dramatic outcome of the crisis as a victory because it highlights his negotiating skills and his pitch to be the moderate voice in a political environment that is becoming more and more extreme.

Also Read:  Two civilians killed by shelling in Russia border region

In the speech, he furthered those credentials by making a point of praising McCarthy, a politician who has long been a Trump supporter and who Biden defeated in 2020 and who is running for re-election himself in 2024.
"I would like to praise Speaker McCarthy. You know, he and I, we and our teams, were able to work together and accomplish goals, Biden said, calling the Republican negotiators "completely honest and respectful of one another."