In addition to paying Social Security benefits, along with salaries for the military and government workers, the United States is also required to make interest and other payments to the bondholders who own its debt. McCarthy has accepted the invitation, a person familiar with the developments said on Tuesday.Įconomists have warned that failure to raise the debt limit, which caps the total amount of money the United States can borrow, threatens to rock financial markets and throw the global economy into a financial crisis.īecause the United States runs a budget deficit - meaning it spends more money than it takes in - it must borrow huge sums of money to pay its bills. The president reached out to Speaker Kevin McCarthy and Representative Hakeem Jeffries of New York, the minority leader, along with Senator Chuck Schumer of New York, the majority leader, and Senator Mitch McConnell of Kentucky, the minority leader. Biden on Monday called the top four leaders in Congress to ask for a meeting on May 9 to discuss fiscal issues. Biden over government spending - a high-stakes standoff between the president and House Republicans who have refused to raise the limit without deep spending cuts attached. The new timeline could accelerate negotiations between the House, the Senate and Mr. The more precise warning over when the United States could hit the so-called X-date dramatically reduces the projected amount of time lawmakers have to reach a deal before the government runs out of money to pay all of its bills on time.

Yellen said on Monday that the United States could run out of money to pay its bills by June 1 if Congress does not raise or suspend the debt limit, putting pressure on President Biden and lawmakers to reach a swift agreement to avoid defaulting on the nation’s debt.

Dead beat by jim butcher