President Biden and House Speaker Kevin McCarthy reached a tentative agreement to raise the debt ceiling, ending a three-month-long standoff that threatened to trigger a US default.

The deal, if enacted, would boost the nation's borrowing limit for two years and take the volatile issue of America’s credit worthiness off the table until after the next presidential election, according to multiple reports.

The pact would also put in place what McCarthy described Saturday as "historic" spending limits that are also expected to be in place for the same period of time.

The announcement comes just days before the US government is expected to run out of money to pay all its bills. Treasury Secretary Janet Yellen said that could happen June 5.

Biden and McCarthy ironed out the final details during two phone calls Saturday. "We still have a lot of work to do but I believe this is an agreement in principle that is worthy of the American people," said McCarthy late Saturday.

Biden, in a statement, said the "agreement represents a compromise, which means not everyone gets what they want."

"It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone," he added.

But Wall Street can’t relax just yet. The leaders now have a difficult task of selling what are sure to be a host of controversial provisions to skeptical lawmakers on both sides of the aisle.

Deep reservations have been evident from both the left and from the right for weeks now with leaders now turning to the process of selling the deal to their sides so it can be enacted into into law.

McCarthy only offered sparse details to reporters on Saturday, saying he wanted to talk with his members first.

President Biden also spoke Saturday with Senate Majority leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY), two men who will be tasked with lining up Democratic votes in the days ahead.