House Speaker Kevin McCarthy told CNBC's "Squawk Box" on Tuesday that "no progress" has been made in debt ceiling negotiations between House Republicans and the White House. The U.S. is getting closer to risking a first-ever default. A raise is required periodically to provide a maximum amount the federal government is allowed to borrow while covering spending obligations. However, House Republicans have refused to lift the debt ceiling without a commitment to spending cuts. The White House is expecting Republicans to raise the cap on borrowing, while Republicans are insisting on attaching spending cuts before raising the limit.

According to the Congressional Budget Office, emergency measures will be exhausted by the administration this summer, potentially leading to a default unless lawmakers raise or suspend the ceiling. While Democrats are calling for a lift on the debt ceiling, they argue that Republicans only make it an issue when a Democratic president is in power. It is crucial to find common ground, drop partisanship, and come up with a solution to address the urgent challenge. If negotiations are unsuccessful, the country may risk a significant crisis that may rattle markets globally and trigger a potential recession in the United States.