The House of Representatives is scheduled to vote on the deal on Wednesday, according to Republican Leader Kevin McCarthy.
White House and Republican negotiators have reached a preliminary agreement on raising the US debt ceiling, say New York Times and CNN citing their sources.
According to media sources, the debt ceiling will be raised for two years. The agreement also reportedly includes cuts in public spending.
Local time, at a press conference held on Saturday evening, the Republican Speaker of the House of Representatives Kevin McCarthy confirmed that a preliminary agreement has been reached. He thinks the House of Representatives will be able to vote on the proposal on Wednesday.
– We still have work to do tonight to finish writing it, McCarthy said.
McCarthy says he will still talk to the president Joe Biden with the final wording of the proposal on Sunday. He adds that the text of the agreement will be published on the same day.
According to CNN’s sources, the parties to the negotiations will review the text of the agreement on their own during the night before Sunday.
There are still no guarantees that the agreement will go through
There is no guarantee yet that the plan will pass the Republican-led House of Representatives. According to both CNN and the New York Times, resistance to the agreement is expected in the House of Representatives from both Democrats and Republicans.
US Treasury Secretary Janet Yellen has estimated that the country will drift into insolvency on June 5 if no agreement is reached on raising the debt ceiling.
Raising the debt ceiling has long been a bone of contention between the Republican-led House of Representatives in Congress and the Democratic President Biden’s administration. If the withdrawal was not made in time, the United States would have to default on its debt servicing costs for the first time in its history.
The United States would also not be able to pay federal employees and interest rates would rise. The consequences would also be felt in global markets.
Biden: The proposal is a compromise
For his part, Biden commented that the settlement represents a compromise that prevents a disaster from occurring. According to him, the agreement will avoid an economic recession and the loss of millions of jobs.
– The proposal is a compromise, which means that not everyone gets everything they want, Biden said.
Biden says he will strongly urge both the House and Senate to pass a bill to raise the debt ceiling.
Sources: AFP, Reuters