Failure to lift the borrowing limit, now $31 trillion, to pay the nation’s incurred bills, would send shockwaves through the U.S. However, the sides are particularly divided over McCarthy’s demands for tougher work requirements on government food stamp recipients that Democrats say is a nonstarter.Įarlier Friday, McCarthy said his Republican debt negotiators and the White House had hit “crunch” time, straining to wrap up an agreement.Īny deal would need to be a political compromise, with support from both Democrats and Republicans to pass the divided Congress. Republicans have made some headway in their drive for steep spending cuts that Democrats oppose. After frustrating rounds of closed-door talks, a compromise had appeared to be nearing on Friday.
In a blunt warning, Yellen said failure to act by the new date would “cause severe hardship to American families, harm our global leadership position and raise questions about our ability to defend our national security interests.”Īnxious retirees and others were already making contingency plans for missed checks, with the next Social Security payments due next week.īiden and McCarthy seemed to be narrowing on a two-year budget-slashing deal that would also extend the debt limit into 2025 past the next presidential election. I’m hopeful we’ll know by tonight whether we’re going to be able to have a deal.” But a deal had not come together by the time Republican House Speaker Kevin McCarthy left the Capitol late Friday. With Republicans at the Capitol talking with Biden’s team at the White House, the president said: “There’s a negotiation going on. Yet Biden was upbeat as he left for the Memorial Day weekend at Camp David, declaring, “It’s very close, and I’m optimistic.” economy into chaos and sap world confidence in the nation’s leadership. It came as Americans and the world uneasily watched the negotiating brinkmanship that could throw the U.S. The later “X-date,” laid out in a letter from Treasury Secretary Janet Yellen, set the risk of a devastating default four days beyond an earlier estimate. WASHINGTON (AP) - President Joe Biden said a deal to resolve the government’s debt ceiling crisis seemed “very close” late Friday, even as the deadline for a potentially catastrophic default was pushed back to June 5 and seemed likely to drag negotiations between the White House and Republicans into another frustrating week.
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