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

A White House official on Friday said that "steady progress" has been made in talks over increasing the United Statesdebt 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 worldto 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.

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Can see 'path'to breakthrough and avert default, says McCarthy

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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.

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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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