The White House administration is optimistic that an agreement can be reached with the House of Representatives on the fate of the rising public debt. US President Joe Biden’s words opens Bloomberg agency.
Staff-level talks between the President and Speaker of the House of Representatives Kevin McCarthy took place late last week. On Tuesday, May 16, Biden and McCarthy will have to meet as part of direct bilateral talks. Against this background, the president said that the discussion of the public debt issue is “progressing” in the most appropriate mode.
“Negotiations (on options to avoid default in the USA. – socialbites.ca) are progressing. I remain optimistic because I’m a natural optimist, but I really think there is a desire on their part as well as on ours to reach an agreement, and I think we can do that,” Biden explained.
McCarthy advocates cutting government spending amid rising public debt. Biden was wary of this possibility until recently. If the parties fail to agree on means to avoid public debt, economic collapse could occur within 17 days – early June this year – the article concludes.
May 9 US Treasury Secretary Janet Yellen statedThe United States will face economic chaos if US authorities do not raise the national debt ceiling. If a default is declared, the country will face a financial crisis. As one of the options to avoid such a scenario, Yellen suggested using the 14th Amendment to the Constitution, which allows avoiding a default by bypassing the position of the legislature.