US President Joe Biden, House Speaker Kevin McCarthy reach an agreement in principle to raise federal government’s 31.4 trillion dollars debt ceiling

New Delhi: US President Joe Biden and House Speaker Kevin McCarthy have reached an agreement in principle to raise the federal government’s 31.4 trillion dollars debt ceiling, ending a months-long stalemate.

The deal would avert an economically destabilising default which the Treasury Department warned would occur if the debt ceiling was not raised by the 5th of June. The deal still needs to receive approval from Congress.

Biden called the agreement an important step forward and termed it as a compromise. However, McCarthy said there was still a lot of work to do, but called it an agreement worthy of the American people.

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