The US government was due to hit its $31.4 trillion borrowing limit on Thursday, amid a stand-off between the Republican-controlled House of Representatives and President Joe Biden's Democrats that could lead to a fiscal crisis.
Republicans, with a newly won House majority, aim to use the congressionally mandated federal debt ceiling to exact spending cuts from Mr Biden and the Democratic-led Senate.
Thursday's deadline will have little immediate effect, because Treasury officials are prepared to begin employing emergency cash management measures to stave off default. More serious risks will emerge closer to June, when the government approaches the so-called X date, beyond which the Treasury would run out of emergency manoeuvres.
Ahead of that deadline, there was no sign that either side was willing to bend.
“It is something that should be done without conditions. We should not be negotiating around it. It is the basic duty of Congress to get that done,” White House Press Secretary Karine Jean-Pierre told reporters.
Republicans are instead pursuing a plan that would seek to avert default by urging the Treasury to prioritise debt payments, and possibly other areas such as Social Security and Medicare, should the limit be breached during negotiations. Republicans hope to complete the legislation by the end of March.
The prospect for brinkmanship has raised concerns in Washington and on Wall Street about a bruising fight over the debt ceiling this year that could be at least as disruptive as the protracted battle of 2011, which prompted a downgrade of the US credit rating and years of forced domestic and military spending cuts.
“We're not going to default on the debt. We have the ability to manage services and pay our interest. But we similarly should not blindly increase the debt ceiling,” Representative Chip Roy, a leading conservative, said.
Mr Roy dismissed concerns about unsettling markets and risking a recession.
“That's what they say every time. It's like clockwork,” Mr Roy said.
“We're already barrelling towards a recession. The question is what it's going to look like — unless the combination of monetary policy and fiscal policy saves us from our stupidity of having spent so much money.”
Congress adopted a comprehensive debt ceiling, the statutory maximum of debt the government can issue, in 1939, intending to limit its growth.
The measure has not had that effect, as, in practice, Congress has treated the annual budget process — deciding how much money to spend — separately from the debt ceiling, in essence agreeing to cover the costs of previously approved spending.
Negotiations on debt prioritisation and spending are not expected to get into full swing until politicians return to Washington next week.
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Democrat Nancy Pelosi served as the 52nd speaker of the US House of Representatives from 2007 to 2011 and again from 2019 to 2023 and has represented California's 11th congressional district since 1987. Getty / AFP -
Mr Jeffries speaks with Ms Pelosi during the eighth vote in the chamber as the House meets for the third day to elect a speaker. AP -
Katherine Marlea Clark is a Democrat serving Massachusetts's 5th congressional district since 2013. She has been House minority whip since 2023 and was assistant House Democratic leader from 2021 to 2023. AP -
Democrat Hakeem Jeffries was recently elected House minority leader and leader of the House Democratic Caucus. Mr Jeffries has represented New York's 8th congressional district since 2013. Bloomberg -
Republican Scott Perry is chairman of the House Freedom Caucus, the furthest-right ideological group and the home of almost all Kevin McCarthy opponents. AP -
Republican Byron Donalds of Florida emerged from relative obscurity this week when he received about 20 votes in several rounds of voting in the speaker election. Getty / AFP -
Republican Chip Roy of Texas is widely known in Congress for obstructionist procedural motions and dissatisfaction with the current legislative rules. EPA -
Colorado Republican Lauren Boebert is a strong supporter of gun rights and once owned a restaurant in which staff were encouraged to openly carry firearms. Getty / AFP -
Republican Andy Biggs of Arizona was among the most outspoken supporters of former president Donald Trump's claims of election fraud in 2020. Getty / AFP -
Republican Matt Gaetz falsely claimed that the January 6 attack on the US Capitol was instigated by far-left extremists and was once part of a sex-trafficking investigation in Florida. Getty / AFP -
Republican Bob Good of Virginia was a prominent opponent of measures designed to stop the spread of Covid-19. AP -
Democrat Ruben Gallego of Arizona lashed out at Texas Republican Senator Ted Cruz in a series of profane tweets in response to the massacre at a Texas elementary school. AP -
Republican Debbie Lesko was charged in Conroe, Texas, with a misdemeanour for tampering with government records. The case was dropped in 1994. Getty / AFP -
Democrat Steven Horsford of Nevada was caught illegally parking his SUV with his personalised licence plate "State Senator 17" in a disabled parking space at a park for several hours. AP -
Republican Paul Gosar was a strong ally of former president Donald Trump and voted to overturn the results of the 2020 US presidential election. Getty / AFP -
Democrat Alexandria Ocasio-Cortez represents New York's 14th district. Taking office at age 29, Ms Ocasio-Cortez is the youngest woman ever to serve in the US Congress. EPA -
A former California firefighter, House Republican Leader Kevin McCarthy was a steady defender of former president Donald Trump for most of his time as majority leader and minority leader. Reuters -
Democrat Adam Schiff of California is a member of the Select Committee to Investigate the January 6th Attack on the US Capitol and serves a large portion of the entertainment community in Los Angeles. AFP -
Democrat Maxine Waters is in her 15th House term. She is the most senior of the 12 black women serving and led the Congressional Black Caucus from 1997 to 1999. Getty -
Republican Marjorie Taylor Greene of Georgia has promoted anti-Semitic, white supremacist and far-right conspiracy theories, including white genocide, QAnon and Pizzagate. Getty / AFP
