Biden strikes ‘temporary’ US debt ceiling deal: report

In early June, United States President Joe Biden and Republican Kevin McCarthy have reportedly reached an “agreement in principle” to raise the federal government’s $31.4 trillion debt limit, amid growing concerns of a possible default.

as of 28 May reports A “tentative” deal was made after a 90-minute phone call between Biden and McCarthy on May 27, Reuters cited “two sources familiar with the conversation” as saying.

The White House and House Republican negotiators have reached an agreement in principle to prevent loan defaults, the sources said.

However, a source pointed out that there are still some components of the deal to be finalised, adding:

“But, I’m not sure it’s completely settled. There might be one or two little things they need to iron out. But close enough to move on.”

It was reported that the deal would prevent an “economically unsustainable default”. It was stressed that the deal must be passed through Congress before Treasury “runs out of money” – which it recently warned would do so on June 5 if the debt ceiling was not raised .

“Exact details of the deal were not immediately available,” it added.

This is a developing story, and further information will be added as it becomes available.