This talks to raise United States debt ceiling and continue to prevent the country from defaulting for the first time in history. aground. President this Monday Joe Bidenand the leader of the Republican majority in the House of Representatives, Kevin McCarthy they kept meeting ” they saidproductive”, but despite their optimism, they acknowledged that: still far from a deal to avoid the crisis.
Thus, the threat continues to loom over the United States that the country will not be able to honor its economic commitments. It will be a disaster that is certain to cause. recession in the country and will extend chaos in global financial markets, In addition hitting economic and political credibility from the USA.
This Treasury Secretary Janet Yellenreiterated this Monday that the so-called “date X” could come in early June. on day 1, despite impossible to determine exact date. Since the allowable debt ceiling was exceeded in January, 31.4 trillion dollars, It uses extraordinary means to meet its Treasury payments.
Better tone, same substance
finally meetingrelated to about an hourHa improved tone At the Republican-Democratic talks the Conservative negotiation team left on Friday when Biden was at the G7 in Japan (part of the president’s interrupted tour of the Pacific region to return to Washington and negotiations). This articlebut it hasn’t changed: Republicans demand spending cuts as a key condition for raising the debt ceiling and accusing the White House of being late to negotiations and “unreasonable”. This democratsfor their part, lay the same blame on the Republicans and refuse to admit some. Requirements that they saw the “excesses” and that Biden himself on Sunday “unacceptable”.
We reiterated once again that default is not on the table and that the only way forward is goodwill towards a bipartisan agreement.” Biden inside brief description After the meeting, in which he admitted thatareas of disagreement‘ and also assured that both he and McCarthy, as well as the negotiators and their teams, would continue to “discuss the way forward.”
McCarthy, in a statement to the press after meeting with Biden face to face, said:i think we can”. But when asked what could break the blockade, he replied “on 1 June”, noting that any deal is unlikely until the threat of default is imminent.
spending cuts
Biden, who initially assured that he would not negotiate with Republicans, eventually did. He and his team have shown their willingness to keep a large number of spending items uninflated over the next two years, which the White House practically guarantees is a cut because it doesn’t even include the increase in inflation. That’s not enough for Republicans and request deep cuts in many programsunity, education, science, employment and research (but not Defense). One of his few concessions has been to reduce demands for spending caps from ten to six years.
While there appears to be progress in negotiations on issues such as those affecting the funds allocated but not spent to tackle the COVID-19 pandemic, there are other issues as well. friction points unresolved These include: Republicans are demanding to tighten working conditions to qualify for certain aid programs public or direct denial Biden’s tax increase proposal for top earners to reduce the deficit.
Democrats also want to ensure that the agreement to raise the debt ceiling does not have to be raised again until after 2018. 2024 presidential election. The Republican bid, on the other hand, will only last until March 2024, forcing the next hike to renegotiate before these elections.
radical wing
McCarthy faces pressure The most radical wing of the Republican Party in Congress to which he is bound to take office and continues relying on the votes needed to pass the law will have to raise the debt ceiling. This radical wing demands that it not succumb to negotiations, but this Monday McCarthy reiterated to the press that they won’t get everything they’re looking for.