White House and GOP negotiators are inching closer to a deal to raise the debt ceiling, which would avert a potential default on U.S. debt. The two sides are reportedly close to a deal that would raise the debt ceiling by $1.2 trillion and include some spending cuts. However, there are still some details that need to be worked out, and it is not yet clear if a deal will be reached before the deadline.
The debt ceiling is a legislative limit on the amount of money that the U.S. government can borrow. The current debt ceiling is $31.4 trillion. If the government reaches the debt ceiling, it will not be able to borrow any more money, which would lead to a default on U.S. debt. A default would have a devastating impact on the U.S. economy, leading to higher interest rates, a decline in the stock market, and a loss of jobs.
The White House and GOP negotiators have been working on a deal to raise the debt ceiling for several weeks. The two sides have made some progress, but there are still some key issues that need to be resolved. One of the main sticking points is the amount of spending cuts that the GOP is demanding. The White House has said that it is willing to make some spending cuts, but it has not agreed to the level of cuts that the GOP is demanding.
Another key issue is the timing of a debt ceiling increase. The White House wants a short-term increase that would give the government time to negotiate a longer-term solution. The GOP, on the other hand, wants a longer-term increase that would not require another vote in Congress.
It is still too early to say if a deal will be reached before the deadline. However, the fact that the two sides are inching closer to a deal is a positive sign. If a deal is reached, it would avert a potential default on U.S. debt and prevent a devastating impact on the U.S. economy.