“I thought we had a productive meeting. We haven’t reached an agreement yet,” Republican Speaker of the US House of Representatives Kevin McCarthy said Monday (local time) after a White House summit with US President Joe Biden.
However, he thinks the conversation has turned out positively, especially in areas where he disagrees with Biden. Biden also said he had a “productive meeting” with McCarthy about the need to “prevent a catastrophe for our economy.”
The U.S. government is at risk of default from early June, according to Treasury Department forecasts. If this were to happen, experts say a global financial crisis would throw the global economy into serious turmoil. Both sides have repeatedly emphasized that they want to avoid the catastrophic scenario.
Biden’s administration is running out of money because in the United States, parliament decides how much the state can borrow. Last-minute negotiations to raise the debt ceiling are not uncommon, but this time they are particularly bitter. The Republicans in Congress want to put pressure on Biden in exchange for, for example, cuts in the social sector.
The situation is even more complicated because the Republicans only have a very narrow majority in the House of Representatives. The parliamentary party also includes extremely radical members of parliament who show no interest in a realistic compromise. However, McCarthy wants to rally some of the radicals behind a possible deal with the Democrats in order to get a majority in the vote. Otherwise, he would have to count on the support of the Democrats, which weakens his position as chief negotiator.
The looming crisis recently affected Biden’s travel plans: After the G7 summit in Japan, he traveled straight back to Washington on Sunday instead of visiting Papua New Guinea and Australia. Meanwhile, the 80-year-old was regularly briefed on the status of negotiations during the G7 summit in Hiroshima. On the return trip, Biden also spoke to McCarthy on the phone.
McCarthy had rated the talk as “productive” and pushed for an early agreement before Monday’s meeting. “I think we can come to an agreement tonight. We can come to an agreement tomorrow, but you have to get something done this week to get it passed (in the House) and in the Senate,” the Republican negotiator said. they “have very good talks”, but nothing has been agreed so far.
Biden also described the call as “good”. On the sidelines of the G7 summit, he had accused Republicans of taking extreme positions and being unwilling to compromise. Biden himself promised a cut in government spending. But we also need to talk about government revenues, especially tax increases for top earners. The Republicans are not ready for that.
US Treasury Secretary Janet Yellen reiterated in a letter to McCarthy and other leaders in Congress on Monday that the world’s largest economy is at risk of bankruptcy on June 1. The US would then no longer be able to pay most of its bills. Millions of people could lose their jobs as a result. In 2011, a Republican majority in Congress delayed raising the debt ceiling. At that time, the US credit rating was downgraded for the only time in history. (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.
