A divided U.S. House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling on Wednesday, with majority support from both Democrats and Republicans to overcome opposition led by hardline conservatives and avoid a catastrophic default.
US President Joe Biden was optimistic about the US averting a technical default. Republicans have refused to raise the nation's debt limit unless Democrats make concessions on spending plans.
As a deadline looms on raising the US government's $31.4 trillion debt ceiling, President Joe Biden began talks with congressional leaders at the White House on Tuesday. Republicans are seeking concessions from the Biden administration to lift the borrowing limit, but the White House has said there should be no negotiations. Officials have warned that the US could default on its debt by as soon as June 1.
US Treasury Secretary Janet Yellen has written to congressional leaders warning that the federal government could run out of cash as early as June 1, unless they agree on raising the debt limit or suspending it.