(Tiper Stock Exchange) – There is confidence in the political environment about the possibility that the White House and Congress reach a agreement on raising the US debt ceilingprocedure as much as necessary for avoid that the federal government fails to pay its obligations and thus the United States ends up in default.
The US default, as recently clarified by the Treasury Secretary Janet Yellenwould be catastrophic and would have impact on financial stability of the United States. If Congress fails to increase the debt limit by June 1st – he underlined – the United States would end up in default and this “would cause serious difficulties for American households, damage the US global leadership position and raise questions on the ability to defend national interests and security”.
“I am confident that we will have an agreement on the budget and that America will not default,” said the US President Joe Biden, before leaving for the G7, adding that “it would be catastrophic if the US did not pay its debts”
The same confidence was expressed by Speaker of the House Kevin McCarthy, who told journalists present in the Capitol that he was optimistic about the successful outcome of the negotiations between the White House and the Republicans in Congress and about the fact that a debt ceiling agreement in time for vote for him next week. “Everyone is working hard”, assured McCarthy, adding “we meet two or three times a day” and we discuss “in a more professional way”, for this reason progress has been made compared to the past few weeks.
But what is still blocking the negotiations? THE Republicans they turned the usual annual budget vote into a weapon of blackmail for the White House and they say they are willing to vote to raise the ceiling de debt only as long as they come cut unnecessary expenses, including social ones and the very expensive health care system, on which President Biden is certainly not willing to negotiate. The negotiations have therefore stalled and the agreement will now reach the “Cesarini area”.
(Photo: Kmccoy)