Republicans confident of avoiding debt crisis

The US president and Republican leader Kevin McCarthy said they were confident Sunday morning of pushing a debt crisis deal through Congress and avoiding a cataclysmic default.

The tentative agreement reached on Saturday offers a road back from the precipice, but it will be a difficult task for both Houses of Congress to get it through before the government runs out of money.

Biden said he will speak to McCarthy at 3:00 PM 1900 GMT to make sure all the Ts are crossed and the Is are dotted. We're in good shape, he said, and he also made clear that he thinks we are in good shape.

The next step is a legislative text that can be scrutinised by party members before a vote on the House of Representatives scheduled for Wednesday.

But all the while, the clock is still ticking down to the June 5 X-date when the Treasury estimates the money to pay bills and debts will begin to run out.

A default would likely have catastrophic consequences, causing a recession and risking a worldwide economic meltdown.

The basic framework of the deal suspends the federal debt ceiling, currently US $31.4 trillion, for two years, enough to pass the next presidential election in 2024 and allow the government to keep borrowing money and remain solvent.

In return, the Republicans secured some limits on federal spending over the same period.