President Joe Biden said on Friday that Democratic and Republican negotiators are trying to resolve the debt ceiling conflict as the deadline for a potentially catastrophic U.S. debt default is extended to June 5. said there is.
“It’s very close and I’m optimistic,” Biden told reporters at the White House. “Hopefully we’ll know if we can get an agreement by tonight.”
While there were no signs of an imminent public announcement, it does indicate that the drama in Washington is over and governments may be able to borrow to trigger a recession and avoid a default that is likely to shock the global economy. It was the strongest sign ever.
Earlier, Treasury Secretary Janet Yellen said the dreaded X-Day, when the government would run out of money if it couldn’t borrow, would be June 5th, not June 1st, but Yellen said the extension would also help. He warned that the urgency remains the same.
In the letter, he wrote, “Waiting until the last minute to suspend or raise the debt ceiling would seriously damage business and consumer confidence, raise the cost of short-term borrowing for taxpayers, and harm US credit.” “It could have a negative impact on our ratings.” House Republican Leader Kevin McCarthy.
Unconfirmed U.S. media reports said the materializing deal would include a two-year extension of the government’s borrowing powers, meaning the current drama would not repeat itself before the 2024 presidential election.
But Democrats will have to concede to Republican demands for greater spending limits on social security and other domestic programs.
McCarthy told reporters that negotiators had “made progress” but added that “nothing is agreed until everything is agreed”.
Signs of how difficult it would be to reach an agreement revolved around Republican demands for those applying for benefits such as food assistance to work for them.
White House press secretary Andrew Bates said Republicans were willing to put “more than eight million jobs” at risk unless they could take food out of the mouths of starving Americans.
IMF Managing Director Kristalina Georgieva called for a “quick solution” to avoid the country’s first-ever default, citing new data showing that “the US economy has proven resilient.” asked.
“We see the Treasury market as an anchor for the global financial system, and this anchor needs to be maintained,” he said.
~ Hostage-taking accusation ~
Congressmen were out of Washington for a 10-day recess as the country has three days of Memorial Day weekend. Even Mr. Biden – to the surprise of some in his party – headed for Camp David’s hideout and then his home in Delaware.
But Deputy Treasury Secretary Wally Adeyemo told CNN that Biden and McCarthy are focused on avoiding catastrophe.
“The president decided, the chair said, we have to do something by June,” Adiemo said. “The president is committed to negotiating in good faith with Republicans to reach an agreement because the alternative would be disastrous for all Americans.”
Raising the debt ceiling is an annual accounting game that usually passes with little notice. It simply allows the government to continue borrowing money to pay bills already incurred through the budget.
This year, the increasingly far-right Republican Party decided to leverage the debt ceiling to push Mr. Biden down the Democratic Party’s priority spending agenda.
Republicans call this taking responsibility for the $31 trillion national debt. The White House has accused the opposition that controls the House of Representatives of holding the economy hostage.
– MILITARY WARNING –
Democratic minority leader Hakeem Jeffries denounced Republicans on the House floor Thursday, accusing them of being at risk of a “dangerous default in a self-inflicted crisis.”
Economists have spent months raising the likelihood of economic catastrophe should the government default on its debts, but senior military officials added their dire predictions on Thursday, saying that the crisis could threaten the military. warned that it would have a “significant adverse effect” on
“Readiness will obviously be affected,” Joint Chiefs of Staff Chairman Mark Milley told reporters.
McCarthy said adjourned lawmakers will be notified 24 hours in advance if they need to return to vote.
https://www.theaustralian.com.au/news/latest-news/washington-seen-inching-closer-to-debt-deal/news-story/aecc853d48c79e0c62ff148811a6a86a Biden ‘hopes’ for imminent U.S. debt deal