The Speaker of the House of Representatives, Republican Kevin McCarthy, announced that he expects an agreement even by the end of this week.
According to the White House, the President of the United States Joe Biden is confident about the ongoing discussions related to raising the debt ceiling.
On Tuesday, Biden met with congressional leaders from both ruling parties.
Speaker of the House of Representatives, a Republican Kevin McCarthy told reporters that there was still a lot of work ahead. However, McCarthy announced that he expects an agreement even by the end of this week, although nothing has been decided so far.
The president also said that he believes that the parties will reach an agreement. Biden stressed that neither side would get everything they wanted.
Raising the debt ceiling is a bone of contention between the Republican-led House of Representatives in Congress and the Democratic President Biden’s administration. If the withdrawal is not made, the United States would default on its debt servicing costs for the first time in its history.
The limit may come as early as the beginning of June, warns the finance minister
Secretary of the Treasury, Democrat Janet Yellen has warned that the limit could be reached as early as the beginning of June. The non-partisan Congressional Budget Office, on the other hand, has predicted that the limit will be reached in mid-June.
The Ministry of Finance has also warned of dark consequences if the country is unable to pay its bills. In this case, the United States would not be able to pay federal employees and interest rates would rise. The consequences would also be felt in global markets.
Republicans have demanded that Biden agree to significant spending cuts in exchange for Republican support for raising the debt ceiling.
Democrats, on the other hand, have accused Republicans of using extreme means to push their case.
On Wednesday, President Biden will fly to Japan for the G7 summit. He was supposed to visit Papua New Guinea and Australia after Japan, but the president will return to the United States on Sunday because of the debt ceiling crisis.