The US government extended the deadline to reach an agreement on the debt ceiling

Treasury Secretary, Janet Yellensaid Friday The maximum credit limit has been extended till June 5Four days longer than previously estimated.

However, Yellen renewed her warning in a letter to Congress that failure to act to raise the borrowing limit would result in “severe hardship.”

Yellen’s latest letter to lawmakers about the “X date” comes as Congress adjourns over the long Memorial Day weekend. He said the Treasury Department had used an extraordinary measure not used since 2015 to bring America’s financial situation to this point.

Date X comes when the government already exists You do not have sufficient financial resources to pay all your debts, After exhausting the measures that have been in use since January to extend the existing funds.

Early Friday morning, the Speaker of the House of Representatives, Kevin McCarthyHe said his Republican debt negotiators and the White House have reached a critical juncture and are trying to strike a deal with the president. Joe Biden Limit federal spending and raise the nation’s debt ceiling before the next deadline.

They hoped to reach an agreement this weekend, ending weeks of frustrating talks. The Treasury is now saying the government could run out of money in the week starting Monday, which could lead to a catastrophic US default with global economic consequences.

As lawmakers left town for the long holiday weekend, anxious retirees and social service groups were among those making predetermined contingency plans. The next batch of social security checks will be released next week.

“The world is watching,” said the managing director of the International Monetary Fund. Kristalina Georgieva, After meeting with Yellen on Friday. “Let’s remember we’re in 12 hours now.”

Democrat Biden and Republican McCarthy worked to finalize the details of a two-year deal that would bridge the gap, cut federal spending and raise the statutory debt limit beyond next year’s presidential election.

Any deal would have to be a political compromise, with the support of both Democrats and Republicans to pass a divided Congress.

“We know it’s a crisis,” McCarthy said as he arrived at an empty Capitol, acknowledging that more progress needs to be made.

Speaking at the White House to honor the champion Louisiana State University women’s basketball team, Biden thanked one of his top negotiators. He “closes a deal, hopefully.”

He refers to the Director of the Office of Management and Budget, Shalanda YoungParticipants and delegates of the event Garrett Graves Louisiana, a leading Republican negotiator.

(With information from AP)

Continue reading: