“We will try to stop it from passing the House,” House Republican Chip Roy said on Twitter. Some Republicans in the House and Senate also objected to the new terms of the deal.

Failure by the US Congress to address the self-imposed debt ceiling by June 5 could trigger a default that would rock financial markets and push the US into a deep recession.

Republicans control the House of Representatives by a margin of 222-213, while Democrats control the Senate by a margin of just 51-49. This slim margin actually gives the new US debt ceiling bill a chance to pass if it gets the support of some moderate Republicans, as nearly all Democrats would vote for it.

The deal reached between Mr Biden and Mr McCarthy includes a guaranteed debt ceiling until January 2025, after the November 2024 presidential election, in exchange for spending caps and cuts to Biden administration programs.

Some hard-line Republicans have been sharply critical of Mr Biden’s rejection of some of Mr McCarthy’s spending-cutting demands. “It’s a total surrender,” said Republican Dan Bishop.

Several credit rating agencies have put the US on review for a possible downgrade, which would push up borrowing costs and erode America's position as the backbone of the global financial system.

Hoang Anh (according to Reuters, AP)