US debt negotiations remained tense on Saturday with President Joe Biden warning that he would not cave in to “extreme” demands from Republicans, but also said he was optimistic about the ability to reach a deal in the coming days.
“I still think we can avoid a default”
The Democratic administration and the Republican opposition are locked in a race against time to prevent a US default that could occur as early as June 1, with potentially catastrophic consequences for the US, and even global, economy.
On Friday, House Republican Leader Kevin McCarthy walked away from the negotiating table with Republican Reps. Garrett Graves and Patrick McHenry. Discussions resumed shortly after this “break”.
Republicans are demanding drastic government budget cuts before giving the green light to raise the debt ceiling.
Differences to overcome between Republicans and Democrats
“The differences are great on many issues,” Patrick McHenry lamented Friday, quoted by the NewsNation site. Moments earlier, it was the White House that had admitted to encountering “real differences” with the Republican opposition and noted that the discussions were “difficult.”
But the resumption of negotiations makes us “optimistic,” White House spokeswoman Karine Jean-Pierre said on Saturday.
If Joe Biden will not agree to the “extreme” demands of the Republicans, “there is a way to find a reasonable bipartisan agreement if the Republicans return to the negotiating table in good faith,” said the House communications director. White. Ben La Bolt.
The negotiations are taking place in the absence of President Joe Biden, who is in Japan for the G7 meeting. He cut short his Asia-Pacific tour because of the US debt crisis and is due back in Washington on Sunday after the Hiroshima summit ends.
“He is informed daily” of the status of the negotiations regarding the debt, and this “several times a day,” the White House spokesman said.
$130 billion budget cut demanded by Republicans
The sticking point between the two camps: the Republicans’ demand to cut federal spending, to bring it back to 2022 levels. That is, cut $130 billion in spending.
A red line that Democrats refuse to cross.
Meanwhile, the Biden administration has pushed to extend the borrowing limit until 2025, according to US media citing officials involved in the talks.
Democrats want to believe that a deal is still possible if the two sides agree not to get all of their demands satisfied, according to a source close to the discussions.
Source: BFM TV
