HomeEconomyUS debt: Republican leader McCarthy announces a "pause" in negotiations

US debt: Republican leader McCarthy announces a “pause” in negotiations

Moments before, The White House has admitted to stumbling on “real differences” with the Republican opposition and indicated that the discussions were “difficult”.

House Republican Leader Kevin McCarthy said Friday that negotiations with the White House on the US debt ceiling should be put on “pause.” “Yes, we have a breather,” the official said in response to a question from reporters in Congress. Moments earlier, the White House admitted to having run into “real differences” with the Republican opposition, saying the discussions were “difficult.”

The Democratic administration and the Republican opposition are locked in a race against time to avoid a possible US default after June 1. If Congress does not raise the US debt ceiling by then, the country could miss out on its loan payments, a potentially catastrophic event for global financial markets.

“We can’t spend more money next year”

On Thursday, Democratic President Joe Biden and the Republican leader had shown some optimism about the possibility of reaching an agreement in principle, while Republicans called for budget cuts before giving the green light to raise the debt ceiling.

Earlier, the elect Garret Graves, one of the Republican negotiators -majority in the House of Representatives- had indicated that it was time to “take a break” in the conversations described as “unproductive” with the Blanche Chamber, according to US media.

Author: TT with AFP
Source: BFM TV

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