Amid growing concerns about a possible default in early June, US President Joe Biden and Republican Kevin McCarthy reportedly reached “agreement in principle” to raise the federal government debt ceiling from USD 31.4 billion.
According to a Reuters report on May 28 citing “two sources familiar with the negotiations,” the “tentative” deal was reached after a 90-minute phone call between Biden and McCarthy on May 27.
“The White House and the negotiators of the Republicans in the House of Representatives have reached an agreement in principle to avoid defaulting on the debt,” the sources said.
However, a source has reported that there are still some components of the agreement to be finalized:
“But I’m not sure it’s fully resolved. There may be one or two little things that have to end. But close enough to move on.”
The deal was reported to prevent an “economically destabilizing default.” It was stressed that the deal must be approved by Congress before the Treasury “runs out of money”, which was recently warned would happen on June 5 if the debt ceiling was not raised.
“Exact details of the deal were not immediately available,” it added.
This is a development story, and more information will be added as it becomes available.
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