Closing summary
We’re only 16 days away from 1 June, when the US government – having hit the legal limit on how much money it can borrow months ago – is expected to exhaust its cash on hand and could default on its debt obligations, potentially causing a financial calamity.
Today, Joe Biden met with top Republican and Democratic lawmakers in congress to negotiate a deal to raise the debt ceiling. Biden will be cutting his trip to Asia short, so he can continue negotiations. House Speaker Kevin McCarthy signaled that the talk was promising, even though Republicans and Democrats remain “far apart” on issues.
Republicans want to cut federal spending before agreeing to lift the debt ceiling – scaling safety net back programs for poor Americans and seniors. They want to impose work requirements for recipients of public assistance, which could be a non-starter for many Democrats.
A number of elections are happening today. Kentucky Republicans will vote on a challenger to take on the state’s Democratic governor Andy Beshear, and special elections in Pennsylvania could determine which party control’s the state’s house of representatives.
In the Senate banking committee, Democratic and Republican lawmakers were skeptical of explanations from former Silicon Valley Bank CEO Gregory W Becker for why the institution went under.
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In a statement, the White House said the meeting today was “productive and direct”.
“The president directed staff to continue to meet daily on outstanding issues. He said that he would like to check in with leaders later this week by phone, and meet with them upon his return from overseas,” according to the White House.
The US could default on its debts by 1 June if negotiations do not conclude, and the debt ceiling is not raised, by then.
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