The political calendar became a little more complicated this Thursday regarding the risk of default in the United States, with the postponement until next week of the discussions at the highest level.
A preliminary meeting was held for the public between Joe Biden and the republican patron of the Chamber of representatives Kevin McCarthy, et d’other parliamentary leaders, to be repoussée au “début de semaine prochaine”, a dit ce jeudi un porte-parole de the White House.
default risk
“The White House did not cancel the meeting, we all decided that it was in our best interest to allow our teams to meet again before we meet again,” Kevin McCarthy said at a news conference.
The US Treasury has indicated that the White House may no longer be able to meet its financial obligations as of June 1. Until then, the House of Representatives, which must vote to increase the maximum amount the United States is allowed to borrow, will only be in session for eight days.
And Joe Biden is supposed to be away, in less than a week, for a multi-day diplomatic tour of Asia. However, he indicated that he would abandon it if the blockade persisted.
The IMF expressed its concern on Thursday about the “serious repercussions” on the world economy that a default by the United States would have.
Democrats and Republicans are locked in a standoff over raising the US debt ceiling, accusing each other of holding the world’s largest economy “hostage.”
However, this legislative maneuver is essential if the world’s largest economy is to continue borrowing and paying its bills, its officials and its creditors.
Source: BFM TV
