Key takeaways:
- Treasury Secretary Janet Yellen has warned that June 1 is a “hard deadline” for Congress to raise the debt ceiling.
- President Joe Biden has suggested citing the 14th Amendment to sidestep the debt ceiling.
- The White House is currently in negotiations with Republicans to end the standoff, but it is unclear if an agreement will be reached in time to avoid default.
President Joe Biden has called on House Republicans to compromise and end their standoff over the debt ceiling, warning that their current position is too “extreme.” Treasury Secretary Janet Yellen has also warned that June 1 is a “hard deadline” for Congress to raise the debt ceiling, as the White House continues to negotiate with Republicans.
Yellen said on NBC’s “Meet The Press” that the Treasury Department expects to be unable to pay all of its bills in early June, and possibly as soon as June 1st. She also warned that if the debt ceiling is not raised, the US could default on its debt.
Biden has also placed renewed emphasis on the possibility of citing the 14th Amendment to sidestep the debt ceiling, a controversial prospect that could rob House Minority Leader Kevin McCarthy of his leverage. The 14th Amendment states that the validity of public debt “shall not be questioned.”
The White House is currently in negotiations with Republicans to end the standoff, but it is unclear if an agreement will be reached in time to avoid default. Biden has urged Republicans to compromise and end the standoff, warning that the consequences of not raising the debt ceiling could be catastrophic.
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