Negotiations are underway in Washington to lift the US federal government's $31.4 trillion debt ceiling before the June 5 deadline. Failure to resolve the current standoff could have catastrophic consequences, as the government may be unable to meet its financial obligations. However, reaching an agreement is proving difficult, with hardline Republicans demanding steep spending cuts and progressive Democrats threatening to withhold support for certain proposed compromises. If Congress fails to lift the debt ceiling, the US could face a possible default, triggering shockwaves through financial markets and potentially plunging the country into a deep recession.