Biden assures no US default as debt ceiling deadline looms

US President Joe Biden has reassured the nation that there will be no default on the country’s debt, whilst lawmakers went on a 10-day break without reaching an settlement on raising the borrowing restrict. The authorities estimates it might run out of cash to service its debts by June 1, and failure to repay loans may potentially lead to a recession and influence world markets. However, House Republicans are demanding as a lot as US$130 billion in cuts and spending caps for 2022 in exchange for their votes to boost the borrowing limit.
“There shall be no default,” Biden stated at the White House, adding that his negotiations with Republican Speaker Kevin McCarthy had been “productive”. However, Democratic minority chief Hakeem Jeffries criticised the Republicans for leaving Washington and risking default in a disaster that they had created.
No questions asked have warned of the potential financial catastrophe if the federal government defaults and prime military officials have also expressed concerns about the crisis having a “significant unfavorable impact” on troops. McCarthy has said lawmakers will receive 24 hours notice if they should return for a vote in the course of the recess, and negotiators are reportedly closing the gap on their differences..

Leave a Comment