It may be possible to reach an agreement on the US national debt during this week, said the leader of the House of Representatives, Republican Kevin McCarthy.

On Tuesday, McCarthy had another meeting with President Joe Biden, who wants to raise the limit on how much the US government can borrow. It was needed to cover the budget deficit and repay previous loans, he said.

If Congress does not agree to raise the so-called debt ceiling, the US treasury will be depleted around June 1.

Raising the debt ceiling is an annual exercise in Washington and has occurred 78 times since 1960.

This year, however, the radical right-wing Republicans have decided to say no and demand deep budget cuts to agree to debt increases.

Tuesday’s meeting lasted just an hour, and McCarthy looked upbeat as she left the White House.

– It is possible to reach an agreement by the end of the week, he said.

US Treasury Secretary Janet Yellen has warned of the consequences of not raising the debt ceiling and said that a default on the national debt could threaten the world economy. The same message came from the International Monetary Fund (IMF).

The US central bank also warned of “disastrous consequences” if it did not raise the debt ceiling, which would mean, among other things, that federal employees would no longer receive wages and state agencies would have to close their doors.

It may also force interest rate increases which will have serious consequences for business and private borrowers in the US, the bank warned.

The current debt limit is 31,400 billion dollars, approximately NOK 336,435 billion at current exchange rates. This corresponds to nearly 23 of the Norwegian oil fund. (© NTB)