WASHINGTON, May 27. House Speaker Kevin McCarthy said the executive and legislative branches are close to an agreement that would allow avoid a US default.
Without congressional approval to expand borrowing limits, the US administration runs the risk of being unable to service its financial obligations as early as next month.
«I feel like we're closer to an agreement now…I'm seeing progress,» McCarthy told reporters as negotiating groups continue to work on compromise.
NBC quoted an unnamed source in the ruling Democratic Party as saying that the parties are «very close» to an agreement, he did not rule out that agreements would be reached as early as Saturday, but there are no plans to announce them immediately.
Republicans link their agreement to raise the debt ceiling with the White House's agreement to limit budget spending. According to CNN, the compromise could include lifting limits on borrowing for two years while limiting spending growth, except for defense and veterans.
The Ministry of Finance announced yesterday that without raising the debt ceiling, the default will come on June 5, and not on June 1, as previously predicted. The Congressional Budget Office calculated that if the administration held out until June 15, quarterly tax revenue would delay the default until at least the end of July.