Debt Ceiling Talks: Biden and McCarthy Negotiate to Avoid Default Crisis
• Speaker Kevin McCarthy says President Joe Biden is failing to negotiate the raising of the US debt limit.
• Many analysts, including Bloomberg commodity strategist Mike McGlone, predict a financial crisis if a deal is not reached.
• President Biden and Speaker McCarthy have appointed senior members of their teams to hammer out a deal.
US Debt Ceiling Negotiations
House of Representatives Speaker Kevin McCarthy has expressed concern that President Joe Biden is not adequately negotiating with Congress on the raising of the US debt limit, which could lead to a looming default. Analysts such as Bloomberg commodity strategist Mike McGlone have warned that this could cause a financial crisis and hurt risk assets like Bitcoin (BTC).
McCarthy’s Criticisms
McCarthy has recently been outspoken in his criticism of Biden for not properly negotiating on the debt ceiling issue. He believes that working towards a deadline should be avoided, and has pushed for productive negotiations between both sides. McCarthy also said he remains confident that an agreement will be reached before any default occurs.
Biden Addresses The Nation
President Biden addressed the nation this morning, saying that he believes an agreement to prevent default is imminent. He stated that both he and McCarthy have appointed senior members from their respective teams to negotiate an agreement before June 1st.
Biden’s Fiscal Plans
In addition, President Biden mentioned his plans to reduce deficit spending by $1.7 trillion in his first two years and then another $3 trillion over the next decade through increased revenue from wealthy individuals and large corporations, in addition to cutting subsidies for Big Oil and Big Pharma companies.
Conclusion
It appears likely that both parties will come together in time to avoid a financial disaster caused by US debt defaulting. However, it remains uncertain whether or not they can reach an agreeable compromise before June 1st when Treasury Secretary Janet Yellen has said they must reach an agreement by or face severe consequences for markets worldwide.
