Republican Speaker of the US House of Representatives Kevin McCarthy has expressed optimism about a speedy settlement in the debt ceiling dispute. ‘We’re not there yet. (…) But I see the way,” McCarthy told reporters in the US Congress on Thursday. “As I have said before, it would be important that we try to reach an agreement in principle sometime this week.”
A vote in the House of Representatives would then be possible next week. McCarthy specifically praised White House Democratic negotiators – Shalanda Young and Steve Ricchetti. They are very professional and strong in their beliefs.
Due to the imminent bankruptcy of the US, President Joe Biden had shortened his trip abroad. Although the Democrat traveled to Japan for the summit of the seven major economic powers (G7), he canceled visits to Australia and Papua New Guinea. Summit meetings between the Republican negotiators and Biden in the White House recently had no concrete result.
Ultimately, Biden hired Young and Ricchetti to represent the White House in negotiations with the Republicans. The 80-year-old has announced a press conference ahead of his return from Japan on Sunday. McCarthy had made negative comments about this project on Wednesday.
In the US, parliament sets a debt ceiling at irregular intervals and determines how much money the state can borrow. This debt ceiling has now been reached and the Ministry of Finance must draw on the capital reserves. Biden and his Democrats need the Republicans in Congress to raise the debt ceiling.
However, these require significant cuts in certain government expenditures. A bankruptcy of the world’s largest economy would have devastating consequences for the US and the global economy. Treasury Secretary Janet Yellen had warned that this was lurking as early as June 1. (sda/dpa)
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
