Biden, McCarthy reach tentative debt ceiling deal

US Democratic President Joe Biden and Republican House Speaker Kevin McCarthy reached a tentative deal to raise the nation's debt ceiling, McCarthy said in a statement. A negotiating team is now working on finalizing the text of the deal.

"I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we've come to an agreement in principle that is worthy of the American people," he wrote in a post on Twitter, before addressing the media in a short statement.

Speaking to the media minutes later, McCarthy said the bill has "historic reductions in spending, consequential reforms, will lift people out of poverty into the workforce and reign in government overreach."

"The are no new taxes, no new government programs, there's a lot more within the bill," he said, without giving more details before as he was yet to brief other members of the house. McCarthy expects Congress to vote on the bill on Wednesday.

The two leaders came to an agreement on Saturday evening, having spoken over the phone earlier that day, a person familiar with the matter told AP.

This comes after a long standoff as both Democrats and Republicans played hardball in the final race for a deal ahead of a critical June 5 deadline. Reaching a deal with imperative for the US to avoid a downgraded credit rating, likely recession and potentially millions of job losses.

Source: DW