Amid growing concerns of a potential default in early June, United States President Joe Biden and Republican Kevin McCarthy have reportedly reached a "preliminary agreement" to raise the federal government's debt ceiling of USD 31.4 trillion.
According to a Reuters report dated May 28, citing "two sources familiar with the negotiations," the "provisional" agreement was reached following a 90-minute phone call between Biden and McCarthy on May 27.
"The White House and Republican House negotiators have reached a preliminary agreement to avert a debt default," the sources stated.
However, one source has indicated that there are still some components of the agreement to be finalized:
"But I'm not sure it's completely resolved. There may be one or two small things that need to be finished. But close enough to move forward."
The agreement was reported to prevent an "economically destabilizing default." It was emphasized that the agreement must be approved by Congress before the Treasury "runs out of money," something that, as recently warned, would occur on June 5 if the debt ceiling was not raised.
"The exact details of the agreement were not immediately available," it was added.
-----------------------------------------------------------------------------------------
Join Community: https://discord.gg/zCbeAYuRXV
Get airdrop off $GSYS: https://zealy.io/c/labrigada/invite/FNG-ZasU7nrAUX45bQQ9q
