US debt limit talks suspended

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House Republican negotiator Garret Graves told reporters that President Joe Biden’s Democrats were acting “irrationally” and there was a pause in talks.

Time is of the essence: At the beginning of June, the US government is threatened with default if Biden’s team does not reach a deal with the Republicans in Congress by then. In the US, parliament sets such a limit at irregular intervals and determines how much the government can borrow.

This time, this process turned into partisan strife. This is dangerous for the US and beyond: A default by the world’s largest economy could trigger a global financial crisis and economic downturn.

Kevin McCarthy, leader of the Republican majority in the House of Representatives, was still optimistic on Thursday: he could see a way to reach an agreement. He said now that there is no action from the White House.

Biden’s side has also talked about progress before. Financial institution Bloomberg reported that the dispute was not a specific issue, but rather broad demands from Republicans, citing negotiating circles. McCarthy said the US will have to spend less money than last year.

Biden’s participation in the G7 summit in Japan temporarily came to the brink due to the country’s budget crisis. Eventually, he canceled the second part of his overseas trip – a visit to Papua New Guinea and Australia – to return to Washington soon after the Hiroshima talks.

(SDA)

Source :Blick