US Debt Ceiling Negotiations Continue Between Biden and McCarthy Teams.

The White House and congressional Republicans are finalizing a deal to raise the US government's $31.4tn debt ceiling for two years while capping spending on everything but military and veterans. The deal would increase funding for discretionary spending on military and veterans while essentially holding non-defense discretionary spending at current year levels. A failure to raise the debt ceiling could trigger a default that would shake financial markets and send the US into a deep recession. The agreement would leave many details to be sorted out in the weeks and months ahead, and each side will have to persuade enough members of their party in the narrowly divided Congress to vote for any eventual deal.