Debt limit deadlock: McCarthy and Biden at odds.

House Speaker Kevin McCarthy is set to send members home after votes on Thursday, signaling that debt negotiations with the White House will continue as the risk of a first-ever default grows. The two sides have agreed to rescind some Covid-19 relief aid, an issue first proposed by House Republicans. Fitch Ratings placed the top-ranked US sovereign credit rating on rating watch negative Wednesday, reflecting the uncertainty surrounding the current debt ceiling debate and the possibility of a first-ever default. Treasury Secretary Janet Yellen has repeatedly said it’s likely that the US Treasury will not be able to pay all of its bills in full and on time as soon as June 1. McCarthy has repeatedly warned that the White House and House GOP must reach a deal this week to avoid default, and he has said raising the debt ceiling is the only concession he will make.