HomeEconomyUS debt: White House reports "steady progress" in negotiations

US debt: White House reports “steady progress” in negotiations

The US government expects the federal debt ceiling to be reached on June 1, if Congress doesn’t vote, as it has to, to raise it.

Joe Biden has been briefed on “steady progress” in negotiations in Washington to prevent a US default, a White House official said on the sidelines of the G7 summit in Japan involving the president on Friday. US.

“The president has asked his team to continue pushing for a bipartisan agreement” and “remains confident in the ability of Congress to take the necessary steps to avoid a default” on the US debt, this official said.

The US government expects the federal debt ceiling to be reached on June 1, if Congress doesn’t vote, as it has to, to raise it.

storm risk

This raises fears that the world’s largest economy will default on debt payments, unleashing a global financial storm and strangling both growth and jobs in the country.

However, the hope of avoiding this catastrophic scenario is currently in order.

“We haven’t agreed to anything yet, but I see a breakthrough where we could come to an agreement,” Republican House Speaker Kevin McCarthy said Thursday.

Republicans are trying to get substantial cuts in public spending in exchange for their green light in Congress to raise the debt ceiling. The White House had accused the Republicans of holding the US economy “hostage.”

Joe Biden has named two special negotiators on the docket. The Democratic president maintained his presence at the G7 summit in Hiroshima (western Japan) but canceled the rest of his Asia-Pacific trip to return to Washington on Sunday to oversee discussions on the debt.

Author: CO with AFP
Source: BFM TV

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