United States president Joe Biden and Republican Kevin McCarthy have reportedly reached a “tenative” agreement to raise the federal government’s $31.4 trillion debt ceiling.

According to a May 28 Reuters report, which cited two sources familiar with the negiotations, Biden and McCarthy reached ” a tenative deal” to raise the debt ceiling, in an effort to avoid a default, over a 90-minute phone call on May 27.

“The White House and negotiators for House Republicans have reached an agreement in principle to avert a debt default,” the sources stated. However one source reported that there is still some components of the deal to be finalized, stating:

“But, I’m not sure it’s completely settled. Might be one or two small things they need to finish. But close enough to move forward.”

It was reported that the deal would prevent an “economically destabalizing default,” if it succeeds in getting it passed in Congress before the Treasury “runs short of money” – which it was recently warned would occur on June 5 if the debt ceiling is not raised.

This is a developing story, and further information will be added as it becomes available.