President Joe Biden said on Saturday that ongoing talks with Congress to raise the US government’s debt ceiling were moving forward, with more details expected in the next two days. Biden is expected to meet with Republican House Speaker Kevin McCarthy and other congressional leaders early next week to continue discussions after canceling a planned meeting on Friday to allow staff members to continue their talks. are.
As there has been talk of raising the government’s $31.4 trillion ceiling in debt progress, advisers to Biden and McCarthy have sought ways to rein in federal spending to avoid a catastrophic default. In addition, the Treasury Department warned that the US could run out of money without an increase in the debt limit before June 1.
Bipartisan effort to address impending default
Addressing reporters at Joint Base Andrews, Biden remained cautiously optimistic about the talks, saying: “I think they’re moving forward, it’s hard to tell. We haven’t reached the critical point yet.” He said more information would be available in the next two days. Congressional staffers and administration officials are discussing a possible deal to raise the debt ceiling and impose new restrictions on federal spending. Are.
Spending cuts being considered include allowing improvements to boost energy production and canceling unused COVID-19 relief funds. However, some legislators have opposed the proposed agreement. McCarthy has insisted on linking spending cuts to increases in the debt ceiling. At the same time, Biden has said he will not negotiate the debt ceiling and has urged Congress to pass a clear increase before discussing a spending framework.
The ongoing standoff has increased the pressure on both sides to reach a consensus. Treasury Secretary Janet Yellen has warned that without an agreement, the US could face its first debt default on June 1, a situation that would have devastating economic consequences and could plunge the world economy into a financial crisis.
Asked if a deal would be reached before June 1, Biden smiled: “It has to happen.” Dent’s determination underscores the urgency of the situation and the importance of bipartisan efforts to resolve the nation’s growing financial crisis.
Next week, President Biden is set to resume talks with Republican House Speaker Kevin McCarthy and other leaders of Congress. The meeting, initially scheduled for Friday, was postponed to allow employees to continue their discussions. Aides to Biden and McCarthy have reportedly discussed limiting federal spending by raising the government’s debt ceiling to $31.4 trillion. The Treasury Department has indicated that without an increase in the debt limit by June 1, the nation could run out of money, which could lead to a catastrophic default.