<p>The US House of Representatives on Wednesday (May 31) voted in favour of raising the country's debt ceiling.&nbsp;The passage of the legislation has brought the US one step closer to eliminating debt default, something that not only will be bad for the US but also for the health of world economy. The deadline set by the US Treasury is just five days away.</p>

<p>The lower chamber of US Congress was deeply divided. The deal got 314 votes in favour and 117 against. The legislation will now be sent to US Senate for its approval. It is expected that the Senate will approve the deal before end of the week.<br />
<br />
The bill suspends&nbsp;the $31.4 trillion debt ceiling.&nbsp;It got&nbsp;support from both Democrats and Republicans. But the support had to&nbsp;overcome opposition from hardline conservatives.</p>

<h2><strong>US Debt Ceiling: Biden and MCcarthy break the deadlock, debt limit suspended till January 1, 2025</strong></h2>

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<p>The House voted with overwhelming bipartisan support as 149 Republicans joined 165 Democrats to pass the debt ceiling legislation negotiated by Speaker Kevin McCarthy and President Joe Biden.</p>

<p>The bill would extend the debt limit for two years with a two-year budget agreement if signed into law. It is the culmination of months of political feud and weeks of frantic&nbsp;parleys between the two parties that finally broke a drawn-out stalemate on the issue.</p>

<p><strong>Explained | <a href="https://www.wionews.com/world/explained-us-is-running-out-of-cash-know-what-is-debt-ceiling-and-current-crisis-595534">US is 'running out of cash'. What is the debt ceiling crisis?</a></strong><br />
<br />
The US Congress must ensure the approved deal reaches President Joe Biden’s desk before Monday (June 5), when the federal government is expected to run out of money to pay its bills.</p>

<h2><strong>President Biden hails development</strong></h2>

<p>Shortly after approval from the House of Representatives, US President Joe Biden hailed the development. He described the passage as "a critical step" to prevent a devastating default. He praised both parties.</p>

<p>"Tonight, the House took a critical step forward to prevent a first-ever default and protect our country’s hard-earned and historic economic recovery.I have been clear that the only path forward is a bipartisan compromise that can earn the support of both parties. This agreement meets that test. I urge the Senate to pass it as quickly as possible so that I can sign it into law, and our country can continue building the strongest economy in the world," he tweeted.</p>

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<p dir="ltr" lang="en">Tonight, the House took a critical step forward to prevent a first-ever default and protect our country’s hard-earned and historic economic recovery.<br />
<br />
I have been clear that the only path forward is a bipartisan compromise that can earn the support of both parties. This agreement…</p>
— President Biden (@POTUS) <a href="https://twitter.com/POTUS/status/1664081809909456896?ref_src=twsrc%5Etfw">June 1, 2023</a></blockquote>
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The US House of Representatives on Wednesday (May 31) voted in favour of raising the country's debt ceiling. The passage of the legislation has brought the US one step closer to eliminating debt default, something that not only will be bad for the US but also for the health of world economy.

The US House of Representatives on Wednesday (May 31) voted in favour of raising the country's debt ceiling. The passage of the legislation has brought the US one step closer to eliminating debt default, something that not only will be bad for the US but also for the health of world economy. The deadline set by the US Treasury is just five days away. The lower chamber of US Congress was deeply divided. The deal got 314 votes in favour and 117 against. The legislation will now be sent to US Senate for its approval. It is expected that the Senate will approve the deal before end of the week. The bill suspends the $31.4 trillion debt ceiling. It got support from both Democrats and Republicans. But the support had to overcome opposition from hardline conservatives. US Debt Ceiling: Biden and MCcarthy break the deadlock, debt limit suspended till January 1, 2025 The House voted with overwhelming bipartisan support as 149 Republicans joined 165 Democrats to pass the debt ceiling legislation negotiated by Speaker Kevin McCarthy and President Joe Biden. The bill would extend the debt limit for two years with a two-year budget agreement if signed into law. It is the culmination of months of political feud and weeks of frantic parleys between the two parties that finally broke a drawn-out stalemate on the issue. Explained | US is 'running out of cash'. What is the debt ceiling crisis? The US Congress must ensure the approved deal reaches President Joe Biden’s desk before Monday (June 5), when the federal government is expected to run out of money to pay its bills. President Biden hails development Shortly after approval from the House of Representatives, US President Joe Biden hailed the development. He described the passage as "a critical step" to prevent a devastating default. He praised both parties. "Tonight, the House took a critical step forward to prevent a first-ever default and protect our country’s hard-earned and historic economic recovery.I have been clear that the only path forward is a bipartisan compromise that can earn the support of both parties. This agreement meets that test. I urge the Senate to pass it as quickly as possible so that I can sign it into law, and our country can continue building the strongest economy in the world," he tweeted. Tonight, the House took a critical step forward to prevent a first-ever default and protect our country’s hard-earned and historic economic recovery. I have been clear that the only path forward is a bipartisan compromise that can earn the support of both parties. This agreement… — President Biden (@POTUS) June 1, 2023 × 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

US House passes debt ceiling deal to prevent default, bill heads to Senate for nod before June 5 deadline

<p>United States President Joe Biden said on Sunday (May 28) that a final bipartisan deal to raise the US debt ceiling now heads to Congress. The deal was struck with House Speaker Kevin McCarthy just a few days before the deadline day.&nbsp;</p>

<p>Biden has urged "both chambers to pass that agreement" and also noted that he did not make too many concessions to end a debt limit crisis.&nbsp;</p>

<p>In a brief appearance before the media at the White House, Biden said, "I think it's a really important step forward. It takes the threat of a catastrophic default off the table."&nbsp;</p>

<p>While speaking to reporters, Biden said that he believed McCarthy negotiated in good faith and had the votes to pass the agreement, which the president said protects his key policy priorities and is "good news" for the American people.&nbsp;</p>

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<p dir="ltr" lang="en">The Speaker and I made clear from the start that the only way forward is with a bipartisan agreement.<br />
<br />
This agreement is an important step forward, and now it will go to the United States House and Senate.<br />
<br />
Here’s my update: <a href="https://t.co/u6vgKtSzvd">pic.twitter.com/u6vgKtSzvd</a></p>
— President Biden (@POTUS) <a href="https://twitter.com/POTUS/status/1663003527172567042?ref_src=twsrc%5Etfw">May 29, 2023</a></blockquote>
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<p>The US has avoided a cataclysmic default after multiple warnings from Treasury Secretary Janet Yellen as she had estimated that the nation could have run out of money to clear its bills had Congress failed to raise the ceiling on borrowing.&nbsp;</p>

<p>Meanwhile, the deal has given a sigh of relief to millions of people who were to lose jobs, and there was also a risk of a global meltdown.</p>

<p>As reported by US-based news outlets, McCarthy told a presser that it is expected that over 95 per cent of House Republicans will support the 99-page bill.&nbsp;In a statement, he also said that the deal would stop "out-of-control" spending by Biden. He argued that it "forces the Executive Branch to find dollar-for-dollar savings in the government for costly rules and regulations, so that executive overreach is reined in and held accountable".&nbsp;</p>

<p>Top Republican Senator Mitch McConnell urged his colleagues to quickly pass the legislation on the deal. He said, "The Senate must act swiftly and pass this agreement without unnecessary delay."&nbsp;</p>

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<p dir="ltr" lang="en">It is simple:<br />
- President Biden wanted to spend more and raise taxes.<br />
- Republicans fought—and won—to reduce spending and stop Biden from radical overreach.<br />
<br />
The systemic reforms we set in place mark the beginning of historic change in Washington. <a href="https://t.co/rjMNsSf5oX">https://t.co/rjMNsSf5oX</a></p>
— Kevin McCarthy (@SpeakerMcCarthy) <a href="https://twitter.com/SpeakerMcCarthy/status/1663008098141843456?ref_src=twsrc%5Etfw">May 29, 2023</a></blockquote>
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<p dir="ltr" lang="en">This responsible debt limit agreement reduces overall spending, reduces non-defense spending, and reduces the deficit—unlike any debt limit increase in recent history. <a href="https://t.co/81bJbqufsH">pic.twitter.com/81bJbqufsH</a></p>
— Kevin McCarthy (@SpeakerMcCarthy) <a href="https://twitter.com/SpeakerMcCarthy/status/1662944110288723970?ref_src=twsrc%5Etfw">May 28, 2023</a></blockquote>
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<h2><strong>What was the crisis?&nbsp;</strong></h2>

<p>America was on the verge of default if the government would have failed to agree to raise the borrowing limit from its current 31.4 trillion dollars in order to maintain paying the nation's debts.&nbsp;</p>

<p>Republicans wanted Biden to sign up for spending cuts in exchange for their support to raise the debt ceiling, but Democratics called for a "clean" increase of the borrowing limit with no strings attached.&nbsp;</p>

<p>Now the basic framework of the deal suspends the federal debt ceiling, for two years — which is apparently enough to get past the next presidential election in 2024 and allow the government to keep borrowing money and remain solvent.&nbsp;</p>

<p><em>(With inputs from agencies)</em>&nbsp;</p>

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United States President Joe Biden said on Sunday (May 28) that a final bipartisan deal to raise the US debt ceiling now heads to Congress. The deal was struck with House Speaker Kevin McCarthy just a few days before the deadline day.

United States President Joe Biden said on Sunday (May 28) that a final bipartisan deal to raise the US debt ceiling now heads to Congress. The deal was struck with House Speaker Kevin McCarthy just a few days before the deadline day. Biden has urged "both chambers to pass that agreement" and also noted that he did not make too many concessions to end a debt limit crisis. In a brief appearance before the media at the White House, Biden said, "I think it's a really important step forward. It takes the threat of a catastrophic default off the table." While speaking to reporters, Biden said that he believed McCarthy negotiated in good faith and had the votes to pass the agreement, which the president said protects his key policy priorities and is "good news" for the American people. The Speaker and I made clear from the start that the only way forward is with a bipartisan agreement. This agreement is an important step forward, and now it will go to the United States House and Senate. Here’s my update: pic.twitter.com/u6vgKtSzvd — President Biden (@POTUS) May 29, 2023 × The US has avoided a cataclysmic default after multiple warnings from Treasury Secretary Janet Yellen as she had estimated that the nation could have run out of money to clear its bills had Congress failed to raise the ceiling on borrowing. Meanwhile, the deal has given a sigh of relief to millions of people who were to lose jobs, and there was also a risk of a global meltdown. As reported by US-based news outlets, McCarthy told a presser that it is expected that over 95 per cent of House Republicans will support the 99-page bill. In a statement, he also said that the deal would stop "out-of-control" spending by Biden. He argued that it "forces the Executive Branch to find dollar-for-dollar savings in the government for costly rules and regulations, so that executive overreach is reined in and held accountable". Top Republican Senator Mitch McConnell urged his colleagues to quickly pass the legislation on the deal. He said, "The Senate must act swiftly and pass this agreement without unnecessary delay." It is simple: - President Biden wanted to spend more and raise taxes. - Republicans fought—and won—to reduce spending and stop Biden from radical overreach. The systemic reforms we set in place mark the beginning of historic change in Washington. https://t.co/rjMNsSf5oX — Kevin McCarthy (@SpeakerMcCarthy) May 29, 2023 × This responsible debt limit agreement reduces overall spending, reduces non-defense spending, and reduces the deficit—unlike any debt limit increase in recent history. pic.twitter.com/81bJbqufsH — Kevin McCarthy (@SpeakerMcCarthy) May 28, 2023 × What was the crisis? America was on the verge of default if the government would have failed to agree to raise the borrowing limit from its current 31.4 trillion dollars in order to maintain paying the nation's debts. Republicans wanted Biden to sign up for spending cuts in exchange for their support to raise the debt ceiling, but Democratics called for a "clean" increase of the borrowing limit with no strings attached. Now the basic framework of the deal suspends the federal debt ceiling, for two years — which is apparently enough to get past the next presidential election in 2024 and allow the government to keep borrowing money and remain solvent. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US: Deal to raise debt ceiling heads to Congress, Biden urges passage

<p>US Treasury Secretary Janet Yellen on Friday (May 26) updated the debt default deadline to June 5 from June 1, as she feared that the treasury may run out of cash. She warned of a possible US debt default if Congress fails to raise the ceiling on borrowing.&nbsp;</p>

<p>In a letter to the Republican speaker of the House of Representatives, Kevin McCarthy, Yellen said, "Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government's obligations if Congress has not raised or suspended the debt limit by June 5."&nbsp;</p>

<p>Yellen stated that the United States is likely to run out of money to clear its bills by June 5.</p>

<p>The recent estimation has provided some breathing room since the Treasury Department has pushed back the date when the government's money will run out.&nbsp;</p>

<p>However, Yellen warned that the deadline extension does not change the urgency to end the standoff in Congress.&nbsp;</p>

<p>America stands on the verge of default if the government does not agree to raise the borrowing limit from its current 31.4 trillion dollars in order to maintain paying the nation's debts.&nbsp;</p>

<p>Republicans say President Joe Biden must sign up for spending cuts in exchange for their support to raise the debt ceiling, ignoring repeated Democratic calls for a "clean" increase of the borrowing limit with no strings attached.&nbsp;</p>

<p>And if at all the deal gets finalised, it must pass both chambers of Congress and therefore hinges on bipartisan support. Republicans control the House 222-213, while Democrats hold the Senate 51-49.&nbsp;</p>

<p>Notably, there were glimmers of hope as unconfirmed US media reports stated that a compromise in the works would involve an agreement to extend the government's borrowing authorisation for two years, ensuring that the present drama does not repeat itself before the presidential election in 2024.&nbsp;</p>

<p>Meanwhile, McCarthy told reporters that negotiators had "made progress", but he also added: "Nothing is agreed to until it's all agreed to."&nbsp;</p>

<p>If Congress fails&nbsp;to raise its self-imposed debt ceiling before the deadline, it might result in a default, causing financial markets to tremble and sending the nation into a deep recession.</p>

<p>In a recent development, the International Monetary Fund on Friday (May 26) said that the US interest rates will likely need to remain higher for longer to tame inflation, and Washington needs to tighten fiscal policy to bring down its federal debt.&nbsp;</p>

<h2>Default would harm&nbsp;military&nbsp;</h2>

<p>Top US officer General Mark Milley said on Thursday that a US government default would harm the country's military, hitting readiness and morale. The chairman of the Joint Chiefs of Staff told journalists at the Pentagon that "there would be a very significant negative impact on the readiness, morale and capabilities of United States military if we defaulted" as well as "reputational damage internationally."&nbsp;<br />
<br />
<em>(With inputs from agencies)</em></p>

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US Treasury Secretary Janet Yellen on Friday (May 26) updated the debt default deadline to June 5 from June 1, as she feared that the treasury may run out of cash.

US Treasury Secretary Janet Yellen on Friday (May 26) updated the debt default deadline to June 5 from June 1, as she feared that the treasury may run out of cash. She warned of a possible US debt default if Congress fails to raise the ceiling on borrowing. In a letter to the Republican speaker of the House of Representatives, Kevin McCarthy, Yellen said, "Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government's obligations if Congress has not raised or suspended the debt limit by June 5." Yellen stated that the United States is likely to run out of money to clear its bills by June 5. The recent estimation has provided some breathing room since the Treasury Department has pushed back the date when the government's money will run out. However, Yellen warned that the deadline extension does not change the urgency to end the standoff in Congress. America stands on the verge of default if the government does not agree to raise the borrowing limit from its current 31.4 trillion dollars in order to maintain paying the nation's debts. Republicans say President Joe Biden must sign up for spending cuts in exchange for their support to raise the debt ceiling, ignoring repeated Democratic calls for a "clean" increase of the borrowing limit with no strings attached. And if at all the deal gets finalised, it must pass both chambers of Congress and therefore hinges on bipartisan support. Republicans control the House 222-213, while Democrats hold the Senate 51-49. Notably, there were glimmers of hope as unconfirmed US media reports stated that a compromise in the works would involve an agreement to extend the government's borrowing authorisation for two years, ensuring that the present drama does not repeat itself before the presidential election in 2024. Meanwhile, McCarthy told reporters that negotiators had "made progress", but he also added: "Nothing is agreed to until it's all agreed to." If Congress fails to raise its self-imposed debt ceiling before the deadline, it might result in a default, causing financial markets to tremble and sending the nation into a deep recession. In a recent development, the International Monetary Fund on Friday (May 26) said that the US interest rates will likely need to remain higher for longer to tame inflation, and Washington needs to tighten fiscal policy to bring down its federal debt. Default would harm military Top US officer General Mark Milley said on Thursday that a US government default would harm the country's military, hitting readiness and morale. The chairman of the Joint Chiefs of Staff told journalists at the Pentagon that "there would be a very significant negative impact on the readiness, morale and capabilities of United States military if we defaulted" as well as "reputational damage internationally." (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US Treasury fears it will run out of cash by June 5, extends debt default deadline

<p><meta name="uuid" content="uuidyntMFrHi1gJU" /><meta charset="utf-8" /></p>

<p>With the US debt default deadline precariously close, President Joe Biden said his administration was close to achieving a breakthrough. For the first time in many weeks, Biden seemed upbeat about the prospect of getting the deal done and raising the debt ceiling.&nbsp;</p>

<p>"It's very close and I'm optimistic," said Biden as he left for the Memorial Day weekend at Camp David.&nbsp;</p>

<p>Biden's team at the White House was busy chalking out a deal with the Republicans at the Capitol via a conference call. Biden reflected on the same and said, “There’s a negotiation going on. I’m hopeful we’ll know by tonight whether we’re going to be able to have a deal."</p>

<p>Republican Representative Patrick McHenry, one of the lead negotiators of House Speaker Kevin McCarthy concurred with the president's statement and added, "I'm hopeful. But we have to make sure we have a line on tax, we have a line on agreement — there’s significant challenges ahead."</p>

<p>Meanwhile, US Treasury Secretary Janet Yellen&nbsp;said the government will now run out of money on June 5, instead of the earlier projected date of June 1. She, however, warned that waiting till the eleventh hour to raise the ceiling could cause more harm.&nbsp;</p>

<p>"Waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States," she said.</p>

<p><strong>Watch | US Treasury Secretary warns country running out of cash</strong></p>

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<h2><strong>What is the debt limit?</strong></h2>

<p>The 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.&nbsp;</p>

<p>Congress earlier this year 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 has been engaged in a fierce tussle to raise the limit.&nbsp;</p>

<p><a href="https://www.wionews.com/world/explained-us-is-running-out-of-cash-know-what-is-debt-ceiling-and-current-crisis-595534" target="_blank"><strong>ALSO READ | Explained | US is 'running out of cash'. What is the debt ceiling crisis?</strong></a></p>

<p>Notably, to raise the limit, any agreement reached will have to pass the scrutiny of&nbsp;the Republican-controlled House and the Democratic-led Senate before Biden could sign it into law — a process that could take more than a week.</p>

<p>So far, the&nbsp;Republicans have been adamant that the Biden administration implement big spending cuts if the debt ceiling was to be raised. According to reports, if Republicans and Democrats arrive at a happy place, the limit could be potentially raised for two years.&nbsp;</p>

<p><em>(With inputs from agencies)</em><br />
<br />
&nbsp;</p>

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With the US debt default deadline precariously close, President Joe Biden said his administration was close to achieving a breakthrough. For the first time in many weeks, Biden seemed upbeat about the prospect of getting the deal done and raising the debt ceiling.

With the US debt default deadline precariously close, President Joe Biden said his administration was close to achieving a breakthrough. For the first time in many weeks, Biden seemed upbeat about the prospect of getting the deal done and raising the debt ceiling. "It's very close and I'm optimistic," said Biden as he left for the Memorial Day weekend at Camp David. Biden's team at the White House was busy chalking out a deal with the Republicans at the Capitol via a conference call. Biden reflected on the same and said, “There’s a negotiation going on. I’m hopeful we’ll know by tonight whether we’re going to be able to have a deal." Republican Representative Patrick McHenry, one of the lead negotiators of House Speaker Kevin McCarthy concurred with the president's statement and added, "I'm hopeful. But we have to make sure we have a line on tax, we have a line on agreement — there’s significant challenges ahead." Meanwhile, US Treasury Secretary Janet Yellen said the government will now run out of money on June 5, instead of the earlier projected date of June 1. She, however, warned that waiting till the eleventh hour to raise the ceiling could cause more harm. "Waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States," she said. Watch | US Treasury Secretary warns country running out of cash What is the debt limit? The 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 earlier this year 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 has been engaged in a fierce tussle to raise the limit. ALSO READ | Explained | US is 'running out of cash'. What is the debt ceiling crisis? Notably, to raise the limit, any agreement reached will have to pass the scrutiny of the Republican-controlled House and the Democratic-led Senate before Biden could sign it into law — a process that could take more than a week. So far, the Republicans have been adamant that the Biden administration implement big spending cuts if the debt ceiling was to be raised. According to reports, if Republicans and Democrats arrive at a happy place, the limit could be potentially raised for two years. (With inputs from agencies) WATCH WION LIVE HERE:

'It's very close...': Biden sounds optimistic on breakthrough in debt ceiling talks

<p><meta name="uuid" content="uuidihHAjt28LoOp" /><meta charset="utf-8" />The USA is edging closer to defaulting on its debt. Unless the debt ceiling is raised by June 5, the country will fall into an economic crisis that may have a far-reaching impact with global spillovers expected, affecting the likes of India, an emerging economy.&nbsp;</p>

<p>The economists are bracing for two scenarios and the effect it might have on the Indian economy. The first one is the base case, meaning, the ceiling will be raised eventually but the volatility in stock markets and currencies would have a sizeable impact.&nbsp;</p>

<p>Even US Treasury Secretary Janet Yellen has warned that waiting till the eleventh hour to raise the ceiling could cause more harm than good.&nbsp;</p>

<p>"Waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States," she added.</p>

<p>As markets face danger, the investors park their money in less risky assets such as bonds, gold and dollars. Consequently, the dollar index has strengthened quite a lot in recent months which has put the rupee under pressure.&nbsp;</p>

<p>Of all the foreign exchange reserves held by the world’s central banks, US dollars account for 58 per cent. If the US does indeed default, it will lose its financial prominence and the centre of world trade. Rating agencies will heavily downgrade its creditworthiness and US sovereign bonds where the Indian government parks its money would have their value reduced to incredibly low levels.&nbsp;</p>

<p>Most companies generate funds for their development projects by taking on debt. A US default could prove a hindrance in the development as there will be less liquidity in the market and debt bonds will provide little to no monetary benefit.&nbsp;</p>

<p><strong>Watch | US Treasury Secretary warns country running out of cash</strong></p>

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<p>The second scenario is a bit of uncharted territory where the US defaults, albeit briefly. Though unlikely, if it happens, the risk-off sentiment would be triggered and could result in depreciation pressures on emerging market currencies viz. rupee.&nbsp;</p>

<p>A lot of what will happen remains in the grey area for even the Reserve Bank of India has not prepared for such a situation. A default will have catastrophic consequences but given the central position of the US dollar in global trade, especially after World War II, the country and its currency is deemed too big to fail by the pundits.</p>

<h2><strong>What is the debt limit?</strong></h2>

<p>The 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.&nbsp;</p>

<p>Congress earlier this year 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 has been engaged in a fierce tussle to raise the limit.&nbsp;</p>

<p><a href="https://www.wionews.com/world/explained-us-is-running-out-of-cash-know-what-is-debt-ceiling-and-current-crisis-595534" target="_blank"><strong>ALSO READ | Explained | US is 'running out of cash'. What is the debt ceiling crisis?</strong></a></p>

<p>Notably, to raise the limit, any agreement reached will have to pass the scrutiny of the Republican-controlled House and the Democratic-led Senate before Biden could sign it into law - a process that could take more than a week.</p>

<p><em>(With inputs from agencies)</em></p>

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The USA is edging closer to defaulting on its debt. Unless the debt ceiling is raised by June 5, the country will fall into an economic crisis that may have a far-reaching impact with global spillovers expected, affecting the likes of India, an emerging economy.

The USA is edging closer to defaulting on its debt. Unless the debt ceiling is raised by June 5, the country will fall into an economic crisis that may have a far-reaching impact with global spillovers expected, affecting the likes of India, an emerging economy. The economists are bracing for two scenarios and the effect it might have on the Indian economy. The first one is the base case, meaning, the ceiling will be raised eventually but the volatility in stock markets and currencies would have a sizeable impact. Even US Treasury Secretary Janet Yellen has warned that waiting till the eleventh hour to raise the ceiling could cause more harm than good. "Waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States," she added. As markets face danger, the investors park their money in less risky assets such as bonds, gold and dollars. Consequently, the dollar index has strengthened quite a lot in recent months which has put the rupee under pressure. Of all the foreign exchange reserves held by the world’s central banks, US dollars account for 58 per cent. If the US does indeed default, it will lose its financial prominence and the centre of world trade. Rating agencies will heavily downgrade its creditworthiness and US sovereign bonds where the Indian government parks its money would have their value reduced to incredibly low levels. Most companies generate funds for their development projects by taking on debt. A US default could prove a hindrance in the development as there will be less liquidity in the market and debt bonds will provide little to no monetary benefit. Watch | US Treasury Secretary warns country running out of cash The second scenario is a bit of uncharted territory where the US defaults, albeit briefly. Though unlikely, if it happens, the risk-off sentiment would be triggered and could result in depreciation pressures on emerging market currencies viz. rupee. A lot of what will happen remains in the grey area for even the Reserve Bank of India has not prepared for such a situation. A default will have catastrophic consequences but given the central position of the US dollar in global trade, especially after World War II, the country and its currency is deemed too big to fail by the pundits. What is the debt limit? The 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 earlier this year 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 has been engaged in a fierce tussle to raise the limit. ALSO READ | Explained | US is 'running out of cash'. What is the debt ceiling crisis? Notably, to raise the limit, any agreement reached will have to pass the scrutiny of the Republican-controlled House and the Democratic-led Senate before Biden could sign it into law - a process that could take more than a week. (With inputs from agencies) WATCH WION LIVE HERE:

US is nearing its debt default deadline. What is its impact on Indian economy?

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<p>The United States is facing an unprecedented crisis of debt default, but President Joe Biden believes that debt default will be avoided as crucial time passes on a race to find agreement between the White House and Republican negotiators on raising the debt ceiling.&nbsp;</p>

<p>Biden said on Thursday (May 25) that "there will be no default". He added that his negotiations with Republican Speaker Kevin McCarthy had been "productive".&nbsp;</p>

<p>White House Press Secretary Karine Jean-Pierre also commented on the current situation. Jean-Pierre said, "The team has had productive discussions. Clearly, that means there continues to be a path forward."&nbsp;</p>

<p>Without providing any details about what both parties were working on, Jean-Pierre stated that the most recent round of talks took place on Thursday.&nbsp;</p>

<p>She said, "Both sides will have to understand that neither side is going to get everything that they want."&nbsp;</p>

<p>The US might default if the government does not agree to raise the borrowing limit from its current 31.4 trillion dollars in order to maintain paying the nation's debts.&nbsp;</p>

<p>US Treasury Secretary Janet Yellen reiterated that her department may run out of cash to pay the nation's bills as soon as June 1, she added that she will update Congress shortly about government finances.&nbsp;</p>

<p><strong>WATCH |&nbsp;Treasury Secretary says US won’t be able to pay all bills by June without an increase in the debt ceiling&nbsp;</strong></p>

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<p>Despite Biden's affirmation, Democratic minority leader Hakeem Jeffries slammed the Republicans from the House floor, accusing them of having abandoned their jobs in Washington to "risk a dangerous default in a crisis that they've created."&nbsp;</p>

<p>He added, "And these Republicans, they're going to say that Joe Biden refused to sit down with them. That's a fake narrative that they've continued to try to put into the public domain."&nbsp;</p>

<p>House Republicans are demanding up to $130 billion in cuts, with spending next year set at 2022 levels. They also seek stricter employment requirements for assistance recipients and the recoupment of unspent pandemic aid funds.</p>

<p>Meanwhile, Democrats oppose the proposed cuts and want Republicans to agree to a no-strings-attached raise, as they have done dozens of times before.&nbsp;</p>

<h2><strong>Harm to military 'readiness, morale'&nbsp;</strong></h2>

<p>Top US officer General Mark Milley said Thursday that a US government default would harm the country's military, hitting readiness and morale.&nbsp;</p>

<p>The chairman of the Joint Chiefs of Staff told journalists at the Pentagon that "there would be a very significant negative impact on the readiness, morale and capabilities of United States military if we defaulted" as well as "reputational damage internationally."&nbsp;</p>

<p>"If we defaulted, that would... have significant economic consequences, which would then translate into national security consequences -- paying troops, the morale of troops, weapons systems, contracts, all of that would be impacted," Milley said.&nbsp;</p>

<p>"Readiness clearly would be impacted. So our large-scale exercises that we do at various training centers would probably either slow down or come to a halt in many, many cases," he added.&nbsp;</p>

<p><em>(With inputs from agencies)&nbsp;</em></p>

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The United States is facing an unprecedented crisis of debt default, but President Joe Biden believes that debt default will be avoided as crucial time passes on a race to find agreement between the White House and Republican negotiators on raising the debt ceiling.

The United States is facing an unprecedented crisis of debt default, but President Joe Biden believes that debt default will be avoided as crucial time passes on a race to find agreement between the White House and Republican negotiators on raising the debt ceiling. Biden said on Thursday (May 25) that "there will be no default". He added that his negotiations with Republican Speaker Kevin McCarthy had been "productive". White House Press Secretary Karine Jean-Pierre also commented on the current situation. Jean-Pierre said, "The team has had productive discussions. Clearly, that means there continues to be a path forward." Without providing any details about what both parties were working on, Jean-Pierre stated that the most recent round of talks took place on Thursday. She said, "Both sides will have to understand that neither side is going to get everything that they want." The US might default if the government does not agree to raise the borrowing limit from its current 31.4 trillion dollars in order to maintain paying the nation's debts. US Treasury Secretary Janet Yellen reiterated that her department may run out of cash to pay the nation's bills as soon as June 1, she added that she will update Congress shortly about government finances. WATCH | Treasury Secretary says US won’t be able to pay all bills by June without an increase in the debt ceiling × Despite Biden's affirmation, Democratic minority leader Hakeem Jeffries slammed the Republicans from the House floor, accusing them of having abandoned their jobs in Washington to "risk a dangerous default in a crisis that they've created." He added, "And these Republicans, they're going to say that Joe Biden refused to sit down with them. That's a fake narrative that they've continued to try to put into the public domain." House Republicans are demanding up to $130 billion in cuts, with spending next year set at 2022 levels. They also seek stricter employment requirements for assistance recipients and the recoupment of unspent pandemic aid funds. Meanwhile, Democrats oppose the proposed cuts and want Republicans to agree to a no-strings-attached raise, as they have done dozens of times before. Harm to military 'readiness, morale' Top US officer General Mark Milley said Thursday that a US government default would harm the country's military, hitting readiness and morale. The chairman of the Joint Chiefs of Staff told journalists at the Pentagon that "there would be a very significant negative impact on the readiness, morale and capabilities of United States military if we defaulted" as well as "reputational damage internationally." "If we defaulted, that would... have significant economic consequences, which would then translate into national security consequences -- paying troops, the morale of troops, weapons systems, contracts, all of that would be impacted," Milley said. "Readiness clearly would be impacted. So our large-scale exercises that we do at various training centers would probably either slow down or come to a halt in many, many cases," he added. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US default would harm US military 'readiness and morale', but Biden vows respite

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<p>The White House said on Tuesday (May 23) that it is not considering any constitutional solution to the current debt impasse as currently, President Joe Biden is not planning to invoke the 14th Amendment to prevent a US debt default.&nbsp;</p>

<p>White House Press Secretary Karine Jean-Pierre told reporters that invoking the 14th Amendment to the constitution "is not going to fix the current problem we have right now".&nbsp;</p>

<p>However, some legal scholars and experts argue that the 14th Amendment would let the US Treasury ignore the debt limit.&nbsp;</p>

<p>The buzz around the 14th Amendment accelerated when Biden previously said that he was considering invoking it, but also noted that he was concerned about the economic consequences of any court challenges.&nbsp;</p>

<p>Jean-Pierre's remarks indicate that Biden has abandoned whatever plans he may have had to employ a constitutional instrument to fix the debt situation.&nbsp;</p>

<p>The US stands on the verge of default if the government does not agree to raise the borrowing limit from its current 31.4 trillion dollars in order to maintain paying the nation's debts.&nbsp;</p>

<p>Republicans say Biden must sign up for spending cuts in exchange for their support to raise the debt ceiling, ignoring repeated Democratic calls for a "clean" increase of the borrowing limit with no strings attached.&nbsp;</p>

<p>Both sides have so far failed to reach a common ground as Biden and Republican House Speaker Kevin McCarthy have undertaken three rounds of face-to-face talks in an attempt to strike an agreement to raise the current borrowing ceiling so that the US can meet its existing expenditure commitments.&nbsp;&nbsp;</p>

<p>The deal, if at all it gets finalised, must pass both chambers of Congress and therefore hinges on bipartisan support. Republicans control the House 222-213, while Democrats hold the Senate 51-49.&nbsp;</p>

<p>Meanwhile, Jean-Pierre also appeared to rule out a temporary debt ceiling extension to give Biden and Mccarthy's teams more time to talk, telling reporters that such a solution is "not on the table".&nbsp;</p>

<p>Notably, a failure to lift the debt ceiling would trigger a default that would shake financial markets.&nbsp;</p>

<p><strong>McCarthy shows optimism</strong></p>

<p>McCarthy on Tuesday expressed optimism for a deal despite another round of talks ended with no signs of progress as he told reporters "we're not there yet", but vowed, "We're going to work until we get it all done".&nbsp;</p>

<p>He said, "I mean it's difficult because you've got to be able to write the bill, then you've got 72 hours here, then you've got the Senate to act. I mean, this is why all the way back in February we wanted to have an agreement well in advance."&nbsp;<br />
<br />
<em>(With inputs from agencies)</em><br />
&nbsp;</p>

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The White House said on Tuesday (May 23) that it is not considering any constitutional solution to the current debt impasse as currently, President Joe Biden is not planning to invoke the 14th Amendment to prevent a US debt default.

The White House said on Tuesday (May 23) that it is not considering any constitutional solution to the current debt impasse as currently, President Joe Biden is not planning to invoke the 14th Amendment to prevent a US debt default. White House Press Secretary Karine Jean-Pierre told reporters that invoking the 14th Amendment to the constitution "is not going to fix the current problem we have right now". However, some legal scholars and experts argue that the 14th Amendment would let the US Treasury ignore the debt limit. The buzz around the 14th Amendment accelerated when Biden previously said that he was considering invoking it, but also noted that he was concerned about the economic consequences of any court challenges. Jean-Pierre's remarks indicate that Biden has abandoned whatever plans he may have had to employ a constitutional instrument to fix the debt situation. The US stands on the verge of default if the government does not agree to raise the borrowing limit from its current 31.4 trillion dollars in order to maintain paying the nation's debts. Republicans say Biden must sign up for spending cuts in exchange for their support to raise the debt ceiling, ignoring repeated Democratic calls for a "clean" increase of the borrowing limit with no strings attached. Both sides have so far failed to reach a common ground as Biden and Republican House Speaker Kevin McCarthy have undertaken three rounds of face-to-face talks in an attempt to strike an agreement to raise the current borrowing ceiling so that the US can meet its existing expenditure commitments. The deal, if at all it gets finalised, must pass both chambers of Congress and therefore hinges on bipartisan support. Republicans control the House 222-213, while Democrats hold the Senate 51-49. Meanwhile, Jean-Pierre also appeared to rule out a temporary debt ceiling extension to give Biden and Mccarthy's teams more time to talk, telling reporters that such a solution is "not on the table". Notably, a failure to lift the debt ceiling would trigger a default that would shake financial markets. McCarthy shows optimism McCarthy on Tuesday expressed optimism for a deal despite another round of talks ended with no signs of progress as he told reporters "we're not there yet", but vowed, "We're going to work until we get it all done". He said, "I mean it's difficult because you've got to be able to write the bill, then you've got 72 hours here, then you've got the Senate to act. I mean, this is why all the way back in February we wanted to have an agreement well in advance." (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

White House: Biden not planning to invoke 14th Amendment to prevent debt default

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<p>As the back-and-forth on extending the debt limit continues, a group of progressive lawmakers in the US are now urging President Joe Biden to use his authority under the 14th Amendment of the Constitution to continue paying the US government’s bills, even if the ceiling is not raised.&nbsp;</p>

<p>With Republicans adamant that the Biden administration implement big spending cuts if the debt ceiling was to be raised, the search for a viable 'Plan B' has been ongoing. According to Democrat lawmakers, the 14th Amendment of the Constitution should be used as the escape route. The law states: "The validity of the public debt of the United States...shall not be questioned."</p>

<p>The likes of&nbsp;Tina Smith, Elizabeth Warren, Ed Markey and Bernie Sanders have written a letter to Biden, listing the plan, claiming that GOP lawmakers were not negotiating in good faith.&nbsp;&nbsp;</p>

<p>Even Biden has considered the alternative but experts fear that using it would trigger a legal battle, as well as undermine global faith in USA's creditworthiness and damage the economy.&nbsp;</p>

<p>“I have been considering the 14th Amendment. And a man I have enormous respect for, Larry Tribe, who advised me for a long time, thinks that it would be legitimate. But the problem is it would have to be litigated," said Biden last week.&nbsp;</p>

<h2><strong>Where are the talks headed?</strong></h2>

<p>After reports claimed that talks between Biden's Democratic administration and House Republicans had come to a halt, an NBC report, late on Friday night claimed that the two factions had returned to the negotiating table. Later, a White House official confirmed to the news outlet that the two parties had reopened talks.&nbsp;</p>

<p>"We will be back in the room tonight," House Speaker and Republican leader Kevin McCarthy told Fox Business.&nbsp;</p>

<p><a href="https://www.wionews.com/world/us-debt-ceiling-talks-resume-after-temporary-pause-report-594289" target="_blank"><strong>ALSO READ | US debt ceiling talks resume after a temporary pause: Report</strong></a></p>

<h2><strong>What is the debt limit?</strong></h2>

<p>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.&nbsp;</p>

<p>Congress earlier this year 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 has been engaged in a fierce tussle to raise the limit.&nbsp;</p>

<p>According to US Treasury Secretary Janet Yellen, even the extraordinary measures, if implemented will only buy the government a limited amount of time.&nbsp;&nbsp;</p>

<p>"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 earlier this year.&nbsp;&nbsp;</p>

<p><a href="https://www.wionews.com/videos/us-debt-ceiling-crisis-president-joe-biden-cancels-post-g7-asia-tour-593388"><b>WATCH |&nbsp;US debt ceiling crisis: President Joe Biden cancels post-G7 Asia tour</b></a></p>

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<p>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.</p>

<p>If the congressional lawmakers cannot make a decision quickly, the world's largest economy could risk defaulting on its debt.</p>

<p><em>(With inputs from agencies)</em><br />
<br />
&nbsp;</p>

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As the back-and-forth on extending the debt limit continues, a group of progressive lawmakers in the US are now urging President Joe Biden to use his authority under the 14th Amendment of the Constitution to continue paying the US government’s bills, even if the ceiling is not raised.

As the back-and-forth on extending the debt limit continues, a group of progressive lawmakers in the US are now urging President Joe Biden to use his authority under the 14th Amendment of the Constitution to continue paying the US government’s bills, even if the ceiling is not raised. With Republicans adamant that the Biden administration implement big spending cuts if the debt ceiling was to be raised, the search for a viable 'Plan B' has been ongoing. According to Democrat lawmakers, the 14th Amendment of the Constitution should be used as the escape route. The law states: "The validity of the public debt of the United States...shall not be questioned." The likes of Tina Smith, Elizabeth Warren, Ed Markey and Bernie Sanders have written a letter to Biden, listing the plan, claiming that GOP lawmakers were not negotiating in good faith. Even Biden has considered the alternative but experts fear that using it would trigger a legal battle, as well as undermine global faith in USA's creditworthiness and damage the economy. “I have been considering the 14th Amendment. And a man I have enormous respect for, Larry Tribe, who advised me for a long time, thinks that it would be legitimate. But the problem is it would have to be litigated," said Biden last week. Where are the talks headed? After reports claimed that talks between Biden's Democratic administration and House Republicans had come to a halt, an NBC report, late on Friday night claimed that the two factions had returned to the negotiating table. Later, a White House official confirmed to the news outlet that the two parties had reopened talks. "We will be back in the room tonight," House Speaker and Republican leader Kevin McCarthy told Fox Business. ALSO READ | US debt ceiling talks resume after a temporary pause: Report What is the debt limit? 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 earlier this year 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 has been engaged in a fierce tussle to raise the limit. According to US Treasury Secretary Janet 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 earlier this year. WATCH | US debt ceiling crisis: President Joe Biden cancels post-G7 Asia tour × 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. (With inputs from agencies) WATCH WION LIVE HERE:

US debt ceiling: Democrat lawmakers ask Biden to use ‘14th Amendment’ to evade debt default

<p>US President Joe Biden, a Democrat, on Wednesday expressed confidence about reaching a deal with his Republican counterparts to reach a deal to avoid a catastrophic US debt default. The said default, may happen by as early as June 1, if the deadlock between two sides over US debt ceiling is not solved soon.&nbsp;</p>

<p>"I am confident that we will get the agreement that we need on the budget and that America will not default," Biden said at the White House on Wednesday, shortly before he left for Japan for a meeting of the Group of Seven (G-7) leaders.</p>

<p>Joe Biden and the US congressional leaders, including the House Speaker Kevin McCarthy have held two rounds of face-to-face talks to reach an agreement on a deal to raise Washington's borrowing limit that will allow the country to pay for its existing commitments as well as the obligations.&nbsp;</p>

<h2><strong>US debt ceiling row: The potential timeline of default</strong></h2>

<p>While the Congressional Budget Office has forecast a US default on its debts by June 15, the Treasury Secretary Janet Yellen on Monday said that the United States could begin defaulting on its debts "potentially as early as June".</p>

<p>On Wednesday, McCarthy said that the time was running out to find a deal.&nbsp;</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/time-is-running-out-as-biden-mccarthy-meet-over-debt-ceiling-deadlock-593039">‘Time is running out’ as Joe Biden, McCarthy meet in bid to resolve US debt ceiling deadlock</a></strong></p>

<p>"Our timeline is short", McCarthy told reporters on Wednesday, adding that Joe Biden and Democratic Senate Majority Leader Chuck Schumer had "finally backed off the insane, irrational, unsensible idea that you just raise the debt ceiling".</p>

<p><strong>ALSO WATCH |&nbsp;What is the US debt ceiling &amp; what happens if it isn’t raised?</strong></p>

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<p>Describing a potential debt default as 'Biden default', McCarthy said that while he is optimistic about the ability of both Democrats and the Republicans to work together, "the only question of whether we have a Biden default is the president himself."</p>

<h2><strong>US potential debt default: It's Democrats Vs Republicans</strong></h2>

<p>The Republicans continue to insist that &nbsp;Biden must agree to significant spending cuts in exchange for their support to raise the ceiling. The Democrats have called for a "clean" increase of the borrowing limit with no strings attached.</p>

<p>Democrats have accused Republicans of using extreme tactics to push their political agenda ahead of the so-called "X-date" at which the United States starts defaulting on its debts because the government has run out of money.</p>

<p>Meanwhile, more than 140 top US chief executives sent a letter to Biden and congressional leaders on Tuesday stressing the need for an agreement.</p>

<p>"We strongly urge that an accord be reached quickly so that the country can avert this potentially devastating scenario," the letter signed by the CEOs from Pfizer and Morgan Stanley, among others, said.</p>

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US President Joe Biden, a Democrat, on Wednesday expressed confidence about reaching a deal with his Republican counterparts to reach a deal to avoid a catastrophic US debt default.

US President Joe Biden, a Democrat, on Wednesday expressed confidence about reaching a deal with his Republican counterparts to reach a deal to avoid a catastrophic US debt default. The said default, may happen by as early as June 1, if the deadlock between two sides over US debt ceiling is not solved soon. "I am confident that we will get the agreement that we need on the budget and that America will not default," Biden said at the White House on Wednesday, shortly before he left for Japan for a meeting of the Group of Seven (G-7) leaders. Joe Biden and the US congressional leaders, including the House Speaker Kevin McCarthy have held two rounds of face-to-face talks to reach an agreement on a deal to raise Washington's borrowing limit that will allow the country to pay for its existing commitments as well as the obligations. US debt ceiling row: The potential timeline of default While the Congressional Budget Office has forecast a US default on its debts by June 15, the Treasury Secretary Janet Yellen on Monday said that the United States could begin defaulting on its debts "potentially as early as June". On Wednesday, McCarthy said that the time was running out to find a deal. ALSO READ | ‘Time is running out’ as Joe Biden, McCarthy meet in bid to resolve US debt ceiling deadlock "Our timeline is short", McCarthy told reporters on Wednesday, adding that Joe Biden and Democratic Senate Majority Leader Chuck Schumer had "finally backed off the insane, irrational, unsensible idea that you just raise the debt ceiling". ALSO WATCH | What is the US debt ceiling & what happens if it isn’t raised? × Describing a potential debt default as 'Biden default', McCarthy said that while he is optimistic about the ability of both Democrats and the Republicans to work together, "the only question of whether we have a Biden default is the president himself." US potential debt default: It's Democrats Vs Republicans The Republicans continue to insist that Biden must agree to significant spending cuts in exchange for their support to raise the ceiling. The Democrats have called for a "clean" increase of the borrowing limit with no strings attached. Democrats have accused Republicans of using extreme tactics to push their political agenda ahead of the so-called "X-date" at which the United States starts defaulting on its debts because the government has run out of money. Meanwhile, more than 140 top US chief executives sent a letter to Biden and congressional leaders on Tuesday stressing the need for an agreement. "We strongly urge that an accord be reached quickly so that the country can avert this potentially devastating scenario," the letter signed by the CEOs from Pfizer and Morgan Stanley, among others, said. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Biden backs off 'raise the debt ceiling' idea, confident of reaching deal to avoid default

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