Talks resume on US debt ceiling as deadline for avoiding default approaches
Republican Kevin McCarthy, Speaker of the US House of Representatives, said that the Republican members of the House have resumed negotiations with the Democratic administration of President Joe Biden on raising the federal government’s borrowing limit of $ 31.4 trillion.
Talks resumed hours after they were paused by McCarthy’s chief negotiator and Biden’s representatives, alarming financial markets as the deadline to avoid default approaches.
A White House official confirmed the talks had resumed.
The White House had said earlier that reaching an agreement on raising the US debt ceiling is still possible.
“If both sides negotiate in good faith and realize that they are not going to get everything they want, an agreement can still be reached,” the White House official said.
The two sides have little time to reach an agreement to raise the federal government’s borrowing limit or risk a catastrophic default.
The US Treasury warned that the government might not be able to pay all its obligations by June 1.