A White House official indicated that "Democratic negotiators have informed President Joe Biden of steady progress in discussions with Republicans aimed at avoiding a U.S. default on its obligations." He added, "The president has directed his team to continue pushing for a bipartisan agreement, emphasizing the necessity of protecting essential programs for struggling Americans." The official stated, "Biden remains confident that Congress will take the necessary actions to avoid defaulting on obligations."
Officials explained that "Biden was briefed on developments in the debt ceiling negotiations with aides to House Speaker Republican Kevin McCarthy on Friday morning while the president was in Japan for the G7 summit." Republicans are refusing to vote to raise the debt ceiling above $31.3 trillion unless Biden and the Democrats agree to cuts in federal budget spending. The U.S. government could default on some debts by June 1 if Congress does not vote to raise the debt ceiling. Economists fear the country may slip into a recession.
Biden shortened his trip to Asia and plans to return home this upcoming Sunday to finalize negotiations, canceling a visit to Papua New Guinea and Australia that was focused on countering China’s influence in the region. A similar standoff in 2011 over the debt ceiling led to a historic downgrade of the U.S. credit rating, causing a massive sell-off in stocks and increasing government borrowing costs.
