White House And Republicans Reach Agreement In Principle To Raise Debt Limit

White House and House Republicans An agreement in principle was reached on Saturday to raise the debt ceiling and avoid default, according to CNN and several news outlets.

The agreement was reached with little time given the June 5 deadline. That̵7;s the date Treasury Secretary Janet Yellen said that if the $31.4 trillion US government defaults on its debt. debt ceiling is not picked up.

For months, the President Joe Biden and house speaker Kevin McCarthy A high-stakes game of political fragility is engaged. The president initially stated that he would not engage in negotiations on any issue other than raising the debt ceiling, warning of dire consequences for the US and world economy should the country default. McCarthy, elected after making a series of concessions to the party’s right wing, has sought budget cuts and other concessions in order to rally his caucus members to vote to raise the ceiling, something that has been criticized by many of his opponents. As well as Representative Matt Gaetz (R-FL) has been compared to a form of hostage-taking.

“We now anticipate that the Treasury will have insufficient resources to meet the government’s obligations if Congress does not extend or suspend the debt ceiling by June 5,” Yellen wrote on Friday. He previously estimated a June 1 date, but provided an update this week as talks continue.

The Wall Street market closed with gains on Friday on hopes of a deal. But there has been considerable uncertainty surrounding the talks, and the next step will be for Congressional leaders to persuade members to support the agreement.