Key facts
- US House Speaker Kevin McCarthy and President Joe Biden will resume debt ceiling negotiations on Friday.
- The Treasury Department has warned that the US could default on its debt by June 1.
- Disagreements persist over the extent of spending cuts.
- McCarthy believes a deal is possible with compromise.
- Biden has agreed to meet with McCarthy despite his stance on not negotiating the debt ceiling.
- The Treasury is using "extraordinary measures" to temporarily avoid default.
Negotiations to raise the US debt ceiling are set to resume on Friday between House Speaker Kevin McCarthy and President Joe Biden. The Treasury Department has issued a stark warning that the nation could default on its obligations as early as June 1 if an agreement is not reached, a scenario that would have profound and potentially catastrophic economic repercussions.
Weeks of discussions between the White House and Republican leadership in the House have yielded little progress, with significant disagreements remaining over the scope of federal spending cuts. McCarthy has expressed optimism that a deal can be struck, emphasizing the need for compromise from both parties. President Biden, while maintaining his position against negotiating the debt ceiling itself, has agreed to meet with McCarthy to find a resolution.