Biden, McCarthy reach ‘agreement in principle’ to raise debt ceiling as default looms

WASHINGTON (AP) — President Joe Biden and House Speaker Kevin McCarthy reached an “agreement in principle” late Saturday as they raced to strike a deal that to limit federal spending and resolve the looming debt crisis ahead of a June 5 deadline, a person familiar with the situation said. A deal would avert a catastrophic U.S. default.

The Democratic president and Republican speaker reached the agreement after the two spoke earlier Saturday evening by phone, said the person, who was speaking on condition of anonymity because the official was not authorized to speak publicly on the matter. The country and the world have been watching and waiting for a resolution to political standoff that threatened the U.S. and global economy.

With the outlines of a deal in place, the legislative package could be drafted and shared with lawmakers in time for votes early next week in the House and later in the Senate.

Biden also spoke earlier in the day with Democratic leaders in Congress to…