Biden spoke earlier in the day with the Democratic leaders in Congress to discuss the status of the talks, according to two people familiar with the situation and granted anonymity to discuss it. But they had not reached a deal yet, another person familiar with the calls said.
Their discussion was set as Treasury Secretary Janet Yellen told Congress that the United States could default on its debt obligations by June 5 -- four days later than previously estimated -- if lawmakers do not act in time to raise the federal debt ceiling. The extended "X-date" gives the two sides a bit of extra time as they scramble for a deal.
Failure to lift the borrowing limit, now US$31 trillion, to pay the nation's incurred bills, would send shockwaves through the U.S. and global economy. 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."
Biden and McCarthy have seemed to be narrowing on a two-year budget-cutting deal that would also extend the debt limit into 2025 past the next presidential election. The contours of the deal have been taking shape to cut spending for 2024 and impose a 1% cap on spending growth for 2025.
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