Appreciate your company. Coming up on cnn newsroom, an agreement in principle on the debt ceiling. Washington has a plan to avoid a catastrophic default, but details still need to be ironned out, then it has to get through congress. Also ukraines top general issues a pointed message for his soldiers, russia, and the world. And we do begin in Washington A Late Night Agreement to try to prevent a looming debt crisis. The white house and republicans have reached a deal in principle to raise the debt ceiling and cap government spending. It is meant to avert the first u. S. Default in history, which could have disastrous consequences worldwide. Heres how u. S. House speaker Kevin Mccarthy characterized the breakthrough. After weeks of negotiate az we have come to an agreement in principle. We still have a lot of work to do, but i believe this is an agreement in principle. It has historic reductions in spending and lift people out of poverty into the work force, rein in government overreach. There are no new taxes, government programs. We still have more work to do tonight to finish all the writing of it. President joe biden praised the deal but acknowledged that it wont please everyone. He said this, quote, the agreement represents a compromise, which means not everyone will get what they want. That is the responsibility of governing. He went on this agreement is good news for the American People because it prevents what could have been a catastrophic default and would have led to an economic recession, retirement accounts devastated, and millions of jobs lost. There is a Long Way To Go and the potential for road bumps and dissent. But mccarthy says the house is expected to vote on it this wednesday. Cnns manu raju has more on what the legislation could include and why there could be opposition on both sides. Reporter after furious rounds of negotiations and staring at the first ever debt default in American HistorySpeaker Mccarthy reached a deal late saturday to raise the National Debt limit and do that in two years time and also include a range of Spending Cuts and other policy concession republicans had demanded including pairing back some social safety programs that had been central to their efforts here. But the white house conceded on those accounts. They ultimately shook hands and reached an agreement in principle, and now the real challenge begins because there is push back. Some conservatives do not believe this bill went far enough. They believe that it is a retreat of sorts from the republican position demanding even deeper Spending Cuts. This proposal would cut spending going back to 2023 levels of federal spending. Republicans wanted to go back, some of the conservatives wanted to go back to 2022 levels. But the white house had conceded substantially on that approach. They did not want any cuts whatsoever as part of this agreement. On the democratic side many did not want any sort of Work Requirements on social Safety Net Programs like food stamps. Also they had furiously opposed any Spending Cuts. So expect some opposition from democrats. Now, Kevin Mccarthy in speaking to reporters in the immediate aftermath of this deal said that a vote would occur on wednesday and then the bill text would be released on sunday. That gives them some 72 hours essentially to begin to lock down the votes. The question is going to be how many republicans will defect . We do expect several dozen republicans at least 35 at the moment warning theyll vote against it, that the number is expected to grow. But how many more will vote against this plan . And can mccarthy keep a majority of his conference behind it . That is the hope and the expectation at the moment from republican leaders, but that does not mean theres enough to pass the house. They will need to get support from democrats. The number of House Democrats who are concerned about this bill will have to be convinced to vote for it. We do note the House Democrats are going to get briefed by white house officials on sunday. Thatll be part of the white house effort to try to get their numbers in line. Can they get that coalition together, get it to the house on wednesday, and then they have to worry about the United States senate which can take time to get any legislation through, several days, sometimes up to a week depending how members respond to this bill. So still some major questions. Despite the significant agreement that was reached late after these frantic negotiations, still uncertain whether they can get there and avoid the nations first ever debt default. By june 5th, the deadline for congress to get the bill through both chambers and get it signed into law. Manu raju, cnn, capitol hill. Now, even before a deal was reached, lawmakers had expressed concerns about what the agreement would include and how it was negotiated. Heres how two members from opposite sides of the aisle responded to the issue. I think the debt ceiling is its just a created thing to hold us the responsible into check. But the reality is Neither Party is responsible. Weve got to get back to some fiscal sanity in this country. We cannot keep spending at these levels. Both parties need to Start Holding the line. If we went back to preending we would have a surplus right now if we were at that level of spending. These are really difficult times right now especially when people are using a default to push a political agenda forward. And so people at home know the Budget Process is separate from this. Theyre combining it because they understand they cant get through these type of cuts through the actual normal process that congress usually takes. And so theyve combined these two things and saying, hey, its my way or the highway. And its not right and thats not the way were supposed to go. All right, lets discuss this now with michael, hes a political analyst and president of the Global Policy institute at Loyola Maramount university. Both sides are going to spin, but whats your read on what we know so far . You hit the nail on the head, what little we know. We dont know the full details and therein lies the rub and thats where were going to have the problem. Because both sides want to make it look like they win. Neither side wants to make it look like they caved in, and yet both sides have had to make some concessions. And so the real problem is going to be when the details of the bill get exposed to the left on the Democratic Party and the right on the republican party, and thats where hostility well find a lot of push back. And of course the calenders tight. Even if things went smoothly and of course they might not, theyve got to have 72 hours to consider it, theyve got to drop the legislation, hopefully a house vote i think wednesday, and then what is a tortuous process in the senate, i think it could be a postjune 5 territory by the time its done. Thats right. And the early euphoria you probably felt earlier in the evening is a bit premature. There are a lot of hurdles that remain. And i dont want to burst anyones bubble, but theres a long road ahead of us. Not just in the house, which will be difficult because Kevin Mccarthy has to show that he can he can deliver it, he can sell the product. And thats not a forgone conclusion. Same is true on the democratic side. And so even when it does pass the house i think it will the senates going to also be a problem because any one member can hold the entire institution hostage by filibustering. And that could take days longer, and so it could very well be we get past that june 5th deadline. Yeah, exactly. There are elements, of course, of the gop who are fiercely hard line. You know, want to blow things up. How at risk is mccarthy if theyre angry given the deal he cut to get the speakership, changing the rules so it only takes one member to pull to vote for the speakership. How much pressure is he under from his hardright . This is his first big test. Can he limit defections from his own party . Can he quell the revolt on the right . And can he get the number he needs . And you mentioned it only takes one member of the house to call for a vote to have a new vote for who the new speaker shall be. And so Kevin Mccarthy is always walking on egg shells or one foot on a banana peel, and this is going to be the true test of both Kevin Mccarthy and the republicans in their ability to govern. You know, Going Forward does a deal with white house concessions in areas they value, does it just sort of encourage this thing Going Forward even if its not until 2025, which it looks like it wont be . I mean does this show economic Hostage Taking works where a party can threaten to send the country off a cliff, affect the Global Financial system and get what it wants or at least a lot of what it wants . This kind of brinksmanship is dangerous. Its dangerous in American Politics, but it also sends a terrible message to the globe, to the rest of the world. Oats not the way a stable super power should behave. If people start to doubt us, wonder if were a reliable partner, wonder if were capable of delivering promises, are we steady enough to be Global Leaders . What this last couple of weeks has shown us is that our democracy does not inspire confidence, and thats a terrible message because if the new normal in American Politics is that chaos and confusion are baked into the process, then china is going to be very happy, and American Leadership is going to be in jeopardy. Yep, there are already countries out there that would like the chinese yuan to replace the dollar, and this gives some ammunition to those. Thank you. Thank you, michael. A tentative deal was reached over the u. S. Memorial holiday day weekend just days before the Treasury Department said the u. S. Risked defaulting on what it owes. Now, a default, which has never happened, by the way, in u. S. History, would have a Global Economic impact. Earlier in the week Fitch Ratings placed u. S. Sovereign credit on, quote, ratings watch negative ahead of a potential downgrade in the event of a default. Catherine rampell a Cnn Economics and political commentator and also a the Washington Post opinion columnist. What a long day. Theres still not much detail even though the steam has already begun, but how much relief will there be in the markets . Not just the u. S. But the Global Economy as well . I think there will be quite a bit of relief in the markets that at least the outlines of a deal seem to be in place. Now, were not Out Of The Woods yet. Whatever this deal is, and we dont know the details of course, it has to be turned into legislation. And then it has it make it through both houses of congress, and that may indeed be a hurdle Going Forward because a number of republican lawmakers have indicated they might try to obstruct it. And democrats as well might be unhappy with the final bill. But if, in fact, progress has been made, yes, this should be a huge relief to anyone who was concerned that the United States might soon be unable to pay its bills. Yeah, and almost certainly it wasnt planned, but its probably a good thing its on a long holiday weekend. The markets arent open until tuesday. Do you think though even with a deal and as you say we dont know exactly what it is but regardless that all of this would have caused more erosion of International Trust in the u. S. With, you know, a Debt Ceiling System that leads to this sort of uncertainty, going close to the edge again. Does it just make the u. S. Look less of a safe bet . Whats the damage . I think nothing good came of this, frankly. Nothing good for a longterm fiscal picture despite what republican lawmakers who have been holding the Debt Limit Hostage argue and nothing good for our international relationships. Look, if we avoid default that will unequivocally be a good thing, but in meantime theres been a lot of dysfunction that has been clear for the Global Economy, our friends and foes to witness that, in fact, other countries, some of our adv adversaries have already taken advantage of. That say they cant even get their act together to pay their bills. So, yes, it would be a good thing if we in fact dont cause a Global Financial crisis, but we did not exactly cover ourselves in glory here in the United States by coming as close as we have. And, again, its still not totally resolved. Yeah. For those who might want to turn away from the u. S. Dollar its just ammunition. I guess when it comes to what we do know that standing it appears will be kept at 2023 levels through 2024, holding spending flat isnt a cut really. Is that a win for the president and also the fact the debt ceiling wont come up again it appears until after the 2024 election. Im trying to imagine the ransom demands in an Election Year. Are both of these things wins for the president . I think the devil is in the details on the actual Spending Levels. So if, in fact, Spending Levels are kept flat not adjusting for inflation and republicans are fighting to increase defense spending, then that would imply that there have to be cuts somewhere else to offset the increase in defense spending. I dont know exactly what the accounting is yet. We have very few details. Maybe they mean spending is flat for all the nondefense stuff. In any event, yes, there could very well be cuts to some programs that come out of this depending on the actual details of the agreement. I think it is definitely a good thing that we are extending the or suspending sounds like the debt limit for the next couple of years. My view is we should get rid of it altogether since it causes nothing but headaches and heartburn. But at the very least its a good thing that this is not coming up again next year because next year obviously is an Election Year in the United States. And as irrational as everyone has behaved in negotiations this year, you can just imagine how many more theatrics you would get if everybodys watching the poll numbers, if politicians are paying more attention to how theyre posturing around the debt limit plays for the election as opposed to it Global Economy and whatever other policy goals they are trying to aim for. So a very good thing that this is not going to be a political football next year. Yeah. You can just imagine. Does a deal with white house concessions in areas they value just encourage this sort of thing Going Forward even if its not until 2025 . I mean does this show, you know, the economic Hostage Taking works for one party can threaten to send the country off an economic cliff and rock the Global Financial system and get what it wants or at least a lot of what it wants . I mean what does that show . That was certainly the lesson from 2011. So viewers may recall there was another Debt Limit Showdown in 2011 where the United States came very close to default, ultimately at the last minute came to a deal. Biden, then Vice President now president , was in charge of some of the negotiations at that time. And one of of the lessons that they learned from that episode was that if you pay a ransom, you encourage more Hostage Taking. And in fact, a couple of years later in 2013 there was another attempt to hold the Debt Limit Hostage. It didnt get quite as bad that year as it did a couple of years, but i think that whole experience is part of the reason now why President Biden had been adamant were not going to negotiate over this, there should be no question about whether the United States will pay its bills, thats just in the constitution. The validity of public debt should not be questioned, were not going to negotiate over that. Obviously ultimately he did, and i do wonder to what extent this is going to encourage more brinksmanship if not next year in 2025 or thereafter. Catherine, so good to have you on this and thanks for staying up. Appreciate it. Catherine rampell. Thank you. Speculation grows in ukraine about its expected Counter Offensive, but as when and where remain up in the air, guns are doing the talking on the ground. Well have that when we come back. vo with verizon, you can now get a private 5g network. So you can do more than connect your business, you can make it even smarter. 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