PN: Republicans in US Congress have reached an agreement in principle with the White House to prevent default

Republicans who control the US House of Representatives have reached an agreement in principle with the White House to raise the national debt ceiling and prevent a sovereign default, Punchbowl News reported.

“House Republicans have reached an agreement in principle with the White House on debt limits,” a correspondent for the publication, which specialises in congressional coverage, wrote on Twitter.

Following US President Joe Biden’s telephone conversation with House Speaker Kevin McCarthy, Republican congressmen will hold an online meeting on Saturday to discuss the outcome of the talks.

Without congressional authorisation to increase borrowing limits, the US administration risks being unable to service its financial obligations as early as early next month. The Republicans, who control the House of Representatives, have linked their consent to the increase of the debt ceiling to the White House’s agreement to limit budget spending.

According to CNN, the compromise could involve waiving borrowing limits for two years while limiting federal spending growth except for defence and veterans’ benefits.

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