US President Joe Biden has reached an agreement in principle with Congress to raise the national debt limit, which will allow the country to level the threat of default.

This was reported by the press service of the White House.

It is noted that Biden and Speaker of the House of Representatives Kevin McCarthy reached a preliminary agreement to end the ceiling of the national debt of $ 31,4 trillion.

"Speaker McCarthy and I have reached a budget agreement. This deal is good news for the American people because it avoids what could be a catastrophic default and lead to an economic recession with the devastation of retirement savings and the loss of millions of jobs," Biden said.

It is known that the agreement provides for the suspension of the debt limit until January 2025, while limiting spending in the budgets for 2024 and 2025, recovering unused funds from COVID-19, speeding up the process of obtaining permits for some energy projects and includes some additional work requirements for food assistance programs for poor Americans.

The deal should prevent an economically destabilizing default if it is backed by Congress before the Treasury Department runs out of money to cover all its obligations if the national debt issue is not resolved by June 5.

Earlier it was reported that the invasion of Ukraine set the Russian economy back four years in one quarter after the attack. New risks to the Russian economy are also created by the confrontation over energy supplies to Europe.

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