President Joe Biden said over the weekend that debt ceiling negotiations were moving along and that talks between the White House and House Speaker Kevin McCarthy would resume on Tuesday.
But there is still no plan in place to avoid a default on US debt, and there are now just four days when both the House and Senate are scheduled to be in session before June 1, the date when Treasury Secretary Janet Yellen has warned the US government could run out of money.
Without swift action by Congress to raise or suspend its self-imposed borrowing limit, the country could soon be unable to pay its bills. Such a default would, in Yellen’s words, cause “an economic catastrophe.”
It would have serious ripple effects on small and medium-sized businesses. It may become more difficult to access credit, further exacerbating the challenges individuals and companies are already facing because of the banking crisis.