US President Joe Biden and Republican representatives have agreed on an agreement in principle regarding the US debt ceiling.
– After weeks of negotiations, we have been able to agree on an agreement in principle. We still have a lot of work to do, but this is a good agreement in principle for the American people, said Republican Kevin McCarthy at a short press conference.
McCarthy says the text of the agreement must first be reviewed and that Congress will likely vote on it Wednesday.
“The deal is a compromise, which means not everyone gets what they want,” President Biden said in a statement.
However, Biden points out that the agreement means that you do not end up in what he describes as a catastrophic situation.
The breakthrough came after a long stalemate in the protracted negotiations between Republicans and Democrats.
Late last Friday, Finance Minister Janet Yellen chose to extend the deadline until June 5.
The extension from the previous June 1 deadline came after Yellen and the Treasury Department reviewed the latest economic estimates of when the Treasury Department does not have enough resources to pay the U.S. government’s bills.