No deal on debt, U.S. pushes back default date
STORY: Democratic and Republican negotiators in talks to raise the U.S. debt ceiling got a bit more breathing room on Friday, as Treasury Secretary Janet Yellen said the government was likely to run out of money to pay its bills on June 5, four days later than she previously predicted.
Negotiators appeared to be nearing a deal to lift the $31.4 trillion debt limit for two years, but were still at odds over whether to stiffen work requirements for some anti-poverty programs.
MCCARTHY: "Look, I’m going to work as hard as we can. As soon as we get a deal we’re going to get a deal, but it has to be worthy of the American people and the sacrifices."
Republican House Speaker Kevin McCarthy and Democratic President Joe Biden have struggled to reach an agreement to raise the federal government's self-imposed borrowing limit and avert a potentially disastrous default... that could wreak havoc on both U.S. and global economies.
With the potential impact so far-reaching, the International Monetary Fund weighed in on Friday.
IMF director Kristalina Georgieva:
“The concern about a speedy resolution of the debt ceiling is one that has been well explained and I joined these concerns. We are very keen to see a resolution as soon as possible. Let's remember we are now in the 12th hour.”
Several credit-rating agencies have said they put the United States on review for a possible downgrade, which would push up borrowing costs and undercut its standing as the backbone of the global financial system.
In Washington, Biden and his Democrats have resisted a Republican push to require some recipients of Medicaid and SNAP food-assistance programs to prove they are working or looking for work to qualify.
Democrats say the proposal would only create more red tape that would exclude people in need who otherwise qualify. Both programs have already been scaled back in recent months.
Most lawmakers in Congress have left Washington for a week-long holiday, but an official briefed on the talks said they could easily slip into the weekend.
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