According to Biden, the US is now avoiding "the worst crisis imaginable". The president calls on the chambers to approve the deal.
"The agreement also represents a compromise where no one got everything they wanted, but that's the responsibility when you govern," Biden said in a brief announcement from the White House Roosevelt room.
Asked by one of the reporters how the president views criticism from his own party ranks that he has agreed to too many concessions, Biden replies:
"They'll realize I didn't.
Major consequences
Without an agreement, the US would either have to start defaulting on its large national debt later this summer or make severe cuts to the state budget, especially social spending. That, according to Biden, could lead to a recession with millions of job losses and be a major blow to many retirees.
"Reducing the deficit"
McCarthy, Speaker of the U.S. House of Representatives, said in a statement that "this responsible debt ceiling agreement reduces spending overall, reduces non-defense spending, and reduces the deficit — unlike any debt ceiling agreement in modern history."
Republicans have a narrow majority in the House of Representatives. But Biden believes Kevin McCarthy will get enough members to approve the proposal.
"I think he negotiated in good faith, he kept his word and did what he said he would do. I have no idea if he has the votes (required), but I guess he does, otherwise he wouldn't have made the deal," Biden said.