Biden and McCarthy agreed to raise the debt ceiling and avoid default in the next two years

Speaker of the US House of Representatives, Republican Kevin McCarthy, after a telephone conversation with President Joe Biden, announced on the evening of May 27, local time, an agreement in principle with the White House to prevent default. On Twitter, he called the event “an agreement in principle worthy of the American people.” According to Bloomberg, the conversation between the two leaders lasted 1.5 hours.

It is expected that the text of the debt ceiling agreement will be finalized on May 28, and the House of Representatives will most likely vote for it on May 31. According to McCarthy, the agreement includes “historic spending cuts” and “reforms that will lift people out of poverty.”