A White House official on Friday said that "steady progress" has been made in talks over increasing the United States&nbsp;debt ceiling at a time when President Joe Biden is in Japan to attend the G7 summit. 
 
The US government is hoping to hit the legal borrowing limit earliest by June 1, increasing the chances of the largest economy in the world&nbsp;to default on debt repayments for the first time in history. 
 
A default on the $31.8 trillion debt of the United States would unleash turmoil for global markets if no agreement is finalised between Republicans and Democrats, who are asking for deep spending cuts before there is an increase in the debt limit. 
 
Biden "requested and received an update this morning from his designated negotiating team" informing him that "steady progress is being made", the official stated. 
 
"The president directed his team to continue pressing forward for a bipartisan agreement," the official added. "He remains confident that Congress will take necessary action to avoid default,” he further stated.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/us-debt-limit-crisis-spooks-other-g7-member-nations-592544">US debt limit crisis spooks other G7 member nations</a>

<h2>Can see 'path'&nbsp;to breakthrough and avert default, says McCarthy</h2>

Top US Republican Kevin McCarthy on Thursday stated that he can see "the path" to reach a breakthrough in talks and finally avert a default, even though his party's hard right has signalled that they will not negotiate their spending-cut demands. 
 
"We're not there - we haven't agreed to anything yet - but I see the path (where) we could come to an agreement," said the House speaker, in his most upbeat assessment yet made of such high-stakes standoff between Biden and Republicans in Congress. 
 
"I think we have the structure now and everybody's working hard,” he added. 
 
"We're on such a short timeline. It makes it almost harder. But there's one thing you know, for me, I never give up. I have the grit, the perseverance and we're gonna get it done,” McCarthy had further stated.

WATCH |&nbsp;US may face debt limit deal aftershocks

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Earlier, Biden had said, “We're going to come together because there's no alternative. To be clear, this negotiation is about the outlines of the budget, not about whether or not we're going to (pay our debts). The leaders (of Congress) have all agreed: We will not default. Every leader has said that.” 
 
Democrats have pointed out the multiple revisions made in the debt limit without budget negotiations, and have accused the Republicans of taking the US economy "hostage".

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A White House official on Friday said that "steady progress" has been made in talks over increasing the United States debt ceiling at a time when President Joe Biden is in Japan to attend the G7 summit.

A White House official on Friday said that "steady progress" has been made in talks over increasing the United States debt ceiling at a time when President Joe Biden is in Japan to attend the G7 summit. The US government is hoping to hit the legal borrowing limit earliest by June 1, increasing the chances of the largest economy in the world to default on debt repayments for the first time in history. A default on the $31.8 trillion debt of the United States would unleash turmoil for global markets if no agreement is finalised between Republicans and Democrats, who are asking for deep spending cuts before there is an increase in the debt limit. Biden "requested and received an update this morning from his designated negotiating team" informing him that "steady progress is being made", the official stated. "The president directed his team to continue pressing forward for a bipartisan agreement," the official added. "He remains confident that Congress will take necessary action to avoid default,” he further stated. ALSO READ | US debt limit crisis spooks other G7 member nations Can see 'path' to breakthrough and avert default, says McCarthy Top US Republican Kevin McCarthy on Thursday stated that he can see "the path" to reach a breakthrough in talks and finally avert a default, even though his party's hard right has signalled that they will not negotiate their spending-cut demands. "We're not there - we haven't agreed to anything yet - but I see the path (where) we could come to an agreement," said the House speaker, in his most upbeat assessment yet made of such high-stakes standoff between Biden and Republicans in Congress. "I think we have the structure now and everybody's working hard,” he added. "We're on such a short timeline. It makes it almost harder. But there's one thing you know, for me, I never give up. I have the grit, the perseverance and we're gonna get it done,” McCarthy had further stated. WATCH | US may face debt limit deal aftershocks Earlier, Biden had said, “We're going to come together because there's no alternative. To be clear, this negotiation is about the outlines of the budget, not about whether or not we're going to (pay our debts). The leaders (of Congress) have all agreed: We will not default. Every leader has said that.” Democrats have pointed out the multiple revisions made in the debt limit without budget negotiations, and have accused the Republicans of taking the US economy "hostage". You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

‘Steady progress’ in talks on raising US debt limit, avoiding default: White House

As US lawmakers come to a deadlock on US debt limit talks, they are yet to resolve the crisis. The US Deputy Treasury Secretary is the latest to appeal for a solution to the ongoing standoff. On the other hand, President Joe Biden and Republican leader Kevin McCarthy will meet again on Tuesday with hopes riding high for their meeting.

US debt limit deadlock spooks investors while Joe Biden is hopeful of a deal on debt ceiling

The US Congressional Budget Office warned that the federal government would be at risk of a payment default as soon as July if politicians fail to raise the debt limit.

US likely to face debt-ceiling crisis this July, warns CBO

The US Treasury Secretary Janet Yellen on Friday wrote a letter to House Speaker Kevin McCarthy, warning that the country was about to hit its debt ceiling limit and that extraordinary measures were needed to avoid defaulting.

The US Treasury Secretary Janet Yellen on Friday wrote a letter to House Speaker Kevin McCarthy, warning that the country was about to hit its debt ceiling limit and that extraordinary measures were needed to avoid defaulting. "I am writing to inform you that beginning on Thursday, January 19, 2023, the outstanding debt of the United States is projected to reach the statutory limit," wrote Yellen in the letter. "Once the limit is reached, Treasury will need to start taking certain extraordinary measures to prevent the United States from defaulting on its obligations." In layman's terms, a debt limit is the amount of money that the US government can borrow to meet its financial obligations such as social security, military salaries and medicare benefits payments. Congress last month extended the statutory debt limit to $31.4 trillion. However, the weak economic fundamentals and overflowing expenditures mean that the US will be breaching the limit. Consequently, Congress may have to engage in a tussle yet again to raise the limit. Read more: US debt reaches all-time high of $31 trillion, by 2029 interest payments may overtake defence expenditure With the Senate under the control of Democrats and the House in Republican hands, it is highly unlikely that a straightforward limit hike will be possible. If the congressional lawmakers cannot make a decision quickly, the world's largest economy could risk defaulting on its debt. According to Yellen, even the extraordinary measures, if implemented will only buy the government a limited amount of time. "It is therefore critical that Congress act in a timely manner to increase or suspend the debt limit. Failure to meet the government's obligations would cause irreparable harm to the US economy, the livelihoods of all Americans, and global financial stability," warned Yellen. WATCH | World Business Watch | US Treasury Secy Janet Yellen predicts fall in inflation by 2023 × The Treasury Department has given two options to reduce debt obligations. Firstly, it has advised the government to redeem existing and suspend new investments in the Civil Service Retirement and Disability Fund (CSRDF) and the Postal Service Retiree Health Benefits Fund (Postal Fund). Additionally, it has requested to suspend reinvestment of the Government Securities Investment Fund of the Federal Employees Retirement System Thrift Savings Plan. Breaching the debt threshold could spell doom for President Joe Biden who is attempting to run for the 2024 presidential election. (With inputs from agencies) WATCH WION LIVE HERE:

US perilously close to hitting debt limit and defaulting, warns treasury secretary Janet Yellen

The US Congress approved raising the federal government's debt limit by $2.5 trillion, to about $31.4 trillion, sending the bill to President Joe Biden to sign and avert an unprecedented default.

US Congress approves boosting debt limit to $31.4 trillion

Democrats unveiled a $3.5 trillion budget blueprint Monday that would launch work on a social and economic policy package that could prove to be the most significant expansion of the nation’s social safety net since Medicare and the Great Society.

The blueprint would allow Senate Democrats to piece together legislation this fall that would greatly boost spending on health care, child and elder care, education and climate change, fully paid for by raising taxes on the wealthy, large inheritances and corporations. And if Democrats and their two independent allies can hold together, that measure could pass the Senate without a Republican vote.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/bidens-budget-sees-low-inflation-rising-debt-and-slow-economic-growth-388118">Biden’s budget sees low inflation, rising debt and slow economic growth</a>

With the Senate on the brink of passing a $1 trillion bipartisan infrastructure bill, the blueprint could unlock Democrats’ ability to secure the remainder of President Joe Biden’s $4 trillion economic agenda.

“At its core, this legislation is about restoring the middle class in the 21st century and giving more Americans the opportunity to get there,” Sen. Chuck Schumer of New York, the majority leader, wrote in a letter to his caucus.

He said the instructions had been carefully coordinated with House Speaker Nancy Pelosi of California and Rep. John Yarmuth of Kentucky, the chairman of the House Budget Committee.

The budget blueprint, while nonbinding, calls for a series of key liberal priorities, including ones championed by Sen. Bernie Sanders, I-Vt., the chairman of the Senate Budget Committee. It calls for an expansion of Medicare to include dental, hearing and vision benefits, the formation of a Civilian Climate Corps to address climate change, and funding to establish universal pre-K and grant free community college tuition for two years.

Also read |&nbsp;<a href="https://www.wionews.com/world/biden-backed-12-trillion-infrastructure-bill-passes-key-hurdle-404062">Biden-backed $1.2 trillion infrastructure bill passes key hurdle</a>

It also accommodates key policy priorities like a path to citizenship for millions of immigrants in the country illegally and provisions to beef up enforcement of labour laws and penalties for employers that violate them. Democrats are trying to push the boundaries of the fast-track budget process to clear policy changes that otherwise would fail to gain Republican support, but the strict budgetary rules may ultimately prevent their inclusion.

Democrats appear to have rejected the possibility of addressing the approaching statutory limit on the federal government’s ability to finance the country’s debt in the budget blueprint. In a statement Monday morning, Treasury Secretary Janet Yellen said Congress should address the debt ceiling in bipartisan legislation, even as Republicans warn they will not join with Democrats in doing so.

“The vast majority of the debt subject to the debt limit was accrued prior to the administration taking office,” Yellen said. “This is a shared responsibility, and I urge Congress to come together on a bipartisan basis as it has in the past to protect the full faith and credit of the United States.”

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The decision is a major risk since a default on the nation’s debt could trigger a global economic crisis. But raising the nation’s statutory borrowing limit in the budget resolution would come with political costs: to do it, Senate rules require that the provision includes a hard number for the debt ceiling increase.

Instead, Democrats would like to use separate legislation to extend the Treasury’s borrowing authority to a future date, not a dollar limit — a far less fraught political target.

Democrats unveiled a $3.5 trillion budget blueprint Monday that would launch work on a social and economic policy package that could prove to be the most significant expansion of the nation’s social safety net since Medicare and the Great Society.

Democrats unveiled a $3.5 trillion budget blueprint Monday that would launch work on a social and economic policy package that could prove to be the most significant expansion of the nation’s social safety net since Medicare and the Great Society. The blueprint would allow Senate Democrats to piece together legislation this fall that would greatly boost spending on health care, child and elder care, education and climate change, fully paid for by raising taxes on the wealthy, large inheritances and corporations. And if Democrats and their two independent allies can hold together, that measure could pass the Senate without a Republican vote. Also read | Biden’s budget sees low inflation, rising debt and slow economic growth With the Senate on the brink of passing a $1 trillion bipartisan infrastructure bill, the blueprint could unlock Democrats’ ability to secure the remainder of President Joe Biden’s $4 trillion economic agenda. “At its core, this legislation is about restoring the middle class in the 21st century and giving more Americans the opportunity to get there,” Sen. Chuck Schumer of New York, the majority leader, wrote in a letter to his caucus. He said the instructions had been carefully coordinated with House Speaker Nancy Pelosi of California and Rep. John Yarmuth of Kentucky, the chairman of the House Budget Committee. The budget blueprint, while nonbinding, calls for a series of key liberal priorities, including ones championed by Sen. Bernie Sanders, I-Vt., the chairman of the Senate Budget Committee. It calls for an expansion of Medicare to include dental, hearing and vision benefits, the formation of a Civilian Climate Corps to address climate change, and funding to establish universal pre-K and grant free community college tuition for two years. Also read | Biden-backed $1.2 trillion infrastructure bill passes key hurdle It also accommodates key policy priorities like a path to citizenship for millions of immigrants in the country illegally and provisions to beef up enforcement of labour laws and penalties for employers that violate them. Democrats are trying to push the boundaries of the fast-track budget process to clear policy changes that otherwise would fail to gain Republican support, but the strict budgetary rules may ultimately prevent their inclusion. Democrats appear to have rejected the possibility of addressing the approaching statutory limit on the federal government’s ability to finance the country’s debt in the budget blueprint. In a statement Monday morning, Treasury Secretary Janet Yellen said Congress should address the debt ceiling in bipartisan legislation, even as Republicans warn they will not join with Democrats in doing so. “The vast majority of the debt subject to the debt limit was accrued prior to the administration taking office,” Yellen said. “This is a shared responsibility, and I urge Congress to come together on a bipartisan basis as it has in the past to protect the full faith and credit of the United States.” The decision is a major risk since a default on the nation’s debt could trigger a global economic crisis. But raising the nation’s statutory borrowing limit in the budget resolution would come with political costs: to do it, Senate rules require that the provision includes a hard number for the debt ceiling increase. Instead, Democrats would like to use separate legislation to extend the Treasury’s borrowing authority to a future date, not a dollar limit — a far less fraught political target.

Democrats unveil $3.5 trillion budget blueprint, without addressing the debt limit

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