In a decisive move to avert a potential default, U.S. President Joe Biden is poised to ratify legislation increasing the country's debt ceiling. This development was made public by the White House.

"The President will, on Thursday, 3rd June, sign into law the Fiscal Responsibility Act of 2023, which will suspend the national debt limit until 1st January 2025," said a statement from the U.S. administration.

President Biden extended his appreciation to Congressional leaders for their cooperative efforts in facilitating the passage of this crucial legislation.

Earlier, on 29th May, the White House confirmed that an agreement had been reached between President Biden and House Speaker Kevin McCarthy regarding the debt ceiling. This agreement seeks to elevate the nation's debt level through to 2025.

Central to this agreement is a biennial budget contract. It proposes maintaining the current spending levels for 2024, whilst also factoring in the potential for augmented defense and honorarium expenditures. As part of the plan, the overall spending level will see a 1 percent increment in 2025.