Saturday, June 10, 2023

Biden remains ‘optimistic’ about agreeing on US debt

Delaware. The President of the United States, Joe Biden, said this Sunday that he remains “optimistic” about reaching an agreement with the Republican majority in the House of Representatives to raise the debt ceiling and avoid default.

“I remain optimistic because I am a born optimist, but I really believe that there is a desire on both their part and ours to reach an agreement. I think we will be able to do that,” he said from his Delaware home. Pass told reporters during the bike ride.

The Biden government warned on Sunday that the United States would enter a “recession” that could lead to the loss of “millions of jobs” if an agreement on raising the debt ceiling is not finalized.

“If Congress can’t raise the default debt ceiling, we’re going to have a recession, and that’s going to be catastrophic,” Willie Adimo, assistant secretary of the Treasury, said on CNN. He said such a situation could result in the loss of “millions of jobs”.

The government and financial institutions have been cautious for weeks about the risk of loan defaults starting in June if there is no agreement in Congress.

Democrats and Republicans maintain an uphill battle on the matter, as Republicans decline, for now, to take it up without massive budget cuts, which Biden rejected.

Adeyemo on Sunday emphasized the efforts made by the president, who unveiled a plan in March that hopes to “reduce the deficit by $3 trillion over ten years.”

The Treasury representative also welcomed the ongoing “constructive” dialogue between the parties.

There should be a new meeting between Biden and Congress leaders this week regarding the matter.

The debt of the first world economy reached $31 trillion on 19 January, beyond which the country could no longer issue new debt to finance itself.

The default, which could happen as early as June, could weigh down the world economy.

Nation World News Desk
Nation World News Desk
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