United States president Joe Biden and Republican Kevin McCarthy have reportedly reached a "tenative" agreement to raise the federal government's $31.4 trillion debt ceiling.
According to a May 28 Reuters report, which cited two sources familiar with the negiotations, Biden and McCarthy reached " a tenative deal" to raise the debt ceiling, in an effort to avoid a default, over a 90-minute phone call on May 27.
"The White House and negotiators for House Republicans have reached an agreement in principle to avert a debt default," the sources stated. However one source reported that there is still some components of the deal to be finalized, stating:
It was reported that the deal would prevent an "economically destabalizing default," if it succeeds in getting it passed in Congress before the Treasury "runs short of money" – which it was recently warned would occur on June 5 if the debt ceiling is not raised.
This is a developing story, and further information will be added as it becomes available.Read more on cointelegraph.com