US House Speaker Kevin McCarthy suggested that US debt discussions with the White House would continue following Thursday's votes amid the rising possibility of a catastrophic default.
As McCarthy will likely send Republican negotiators home, House Majority Leader Steve Scalise said the House would adjourn after Thursday's votes. In contrast, negotiators continue to work toward a US debt limit resolution, per a CNN report.
Scalise noted that members will get "24 hours' notice" if there will be a need for the negotiating team to go back to Washington over the weekend or next week for "any additional votes."
Unresolved concerns include government expenditure reduction. According to sources, the White House is contemplating the GOP's requests in return for McCarthy's lone concession: lifting the debt ceiling.
The White House blamed McCarthy's Republicans for seeking "extreme" expenditure cutbacks that would hurt millions of Americans nationwide.
Unfazed, House Speaker Kevin McCarthy said the debt limit crisis was "not my fault." He also expressed optimism about reaching a deal before the deadline, according to AP News.
House Speaker McCarthy and Democratic President Joe Biden think they could identify common ground on expenditure, taxation, and anti-poverty initiatives. They described the protracted meetings their negotiation teams had on Wednesday as fruitful.
According to several reports, both parties have agreed to withdraw some COVID-19 relief aid, a suggestion first made by House Republicans.
A compromise might be achieved by Friday afternoon, according to Representative Kevin Hern, chair of the critical Republican Study Committee.
Is McCarthy Not Taking The US Debt Limit Deadline Seriously?
The US Treasury Department cautions that if the debt limit is not lifted by June 1, the US might run out of money to pay its payments. A US government default would likely result in financial market turbulence and a recession in the US.
While the Treasury's prediction is not flawless, some private sector experts believe the country might survive a week more without defaulting. This viewpoint has caused McCarthy's caucus hardliners to dismiss the June 1 ultimatum, per Reuters.
Global financial markets have been shaken by the imminent danger of a debt default catastrophe, which would be unprecedented in modern times.
Due to the debt limit brinkmanship and political hostility, the Fitch Ratings agency placed the US' AAA credit on "ratings watch negative" late in the day.
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