As White House and Republican negotiators tentatively narrowed differences but were still clashing Friday on key issues, the Treasury Department signaled that the nation has a small amount of extra time before a potential default on U.S. government debt.
Treasury Secretary Janet Yellen announced the department expects to be able to make payments on U.S. debts up until June 5 if lawmakers fail to act on the U.S. debt ceiling. That set a more pointed date for a potential default—but is also four days later than her previous comments eyeing trouble as soon as June 1.
The new so-called "X-date" buys negotiators for House Speaker Kevin McCarthy and President Joe Biden more time to strike a deal. The negotiating teams haven't met in person since Wednesday but spoke late into the night on Thursday and were in regular communication throughout the day Friday.
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