U.S. President Joe Biden and House of Representatives Speaker Kevin McCarthy, the top Republican in Washington, hope to finalize a deal on the debt ceiling after Biden returns from the Group of Seven meeting in Japan on Sunday.
Vice President Kamala Harris and top White House economic adviser Lael Brainard said on Thursday that a default on the U.S. debt of $31.4 trillion would throw the American economy into a recession.
President Joe Biden will continue talks with congressional leaders on the United States' debt limit later this week, the White House said on Wednesday, as U.S. House Speaker Kevin McCarthy vowed to avoid a default.
Democrats in the Republican-led House of Representatives on Wednesday plan to file a discharge petition - a way to bypass regular procedures in the chamber - as a means to raise the U.S. debt limit in case it becomes necessary, the top House Democrat said.
The standoff over the federal debt limit is already having dire consequences for the U.S. economy, driving borrowing costs higher and adding to the country's debt burden, U.S. Treasury Secretary Janet Yellen is expected to say in prepared remarks on Tuesday.