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| US President Joe Biden (second from right) with Senate Minority Leader Mitch McConnell (far left), House Speaker Kevin McCarthy (second from left) and Senate Majority Leader Chuck Schumer in the Oval Office of the White House on May 9, after a meeting on the debt ceiling agreement. (Source: AP) |
“I feel like we are closer to a deal now than we have been in a long time, because I see progress, but it is not easy by any means,” Mr McCarthy said.
Asked if a deal could be reached before June 5, given that the US Treasury Department said the government would run out of money to pay all its bills if Congress did not act, Mr McCarthy said "yes".
Earlier on May 27, Reuters reported that US Treasury Secretary Janet Yellen repeated her warning that the government would run out of money to pay its bills on June 5, leading to the possibility of default, unless Congress raises the debt ceiling, which is set at $31.4 trillion.
Yellen's May 26 announcement gives Democratic President Joe Biden and Republican House Speaker Kevin McCarthy more time to negotiate a possible increase in the debt ceiling.
The US Treasury Department previously said the two parties needed to reach an agreement by June 1.
Before the announcement from the ministry, Congressman Patrick McHenry, a member of the Republican negotiating team, said the party could handle the issue on June 5.
“We’re not done yet, but we’re in a position to do this and we have to work through some really difficult terms,” McHenry told reporters.
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