USA, closer to an agreement on raising the debt limit

With a June 1 deadline in sight, the White House and Republican Party officials on Friday continued their efforts to avert a debt ceiling crisis. Leaders of both parties rejected it agreement on increasing the debt limit could be closer than expected and that, although he offered guarantees for the interests of both groups, he would not be welcomed by all parties.

On Thursday, Kevin McCarthy, the Republican leader in the talks, warned that, if reached, a deal would not be to everyone’s taste. “This system doesn’t work like that,” he stressed.

McCarthy’s announcement came after a week of rapprochement and optimism from Republican and Democratic negotiators that suggested a pact could be close. If so, it could arrive in time to avoid a debt default, which, according to the Finance Ministry, would begin on June 1, after taking advantage of “extraordinary measures” that have extended the country’s solvency since the previous limit was reached. January. The margin provided by these measures is, however, unpredictable, and Republican voices pointed out that it could go beyond June 1. In any case, it would be a question of the day.

A one-week delay in payment could affect the 27th from 67 millions of Americans Social Security dependents, most of them retirees or Medicare and Medicaid beneficiaries. Among them will be the oldest, whose pensions are part of the payments that the social security must make on June 2.

The last time the debt ceiling negotiations stalled, in 2011, during the Obama presidency, it took half a year for the US stock market to stabilize again. The cost of financing companies skyrocketed, and for the first time in the history of the rating agency Standard & Poor’s lowered the credit rating of the USA.

So the margin of doubt is increased at the edge of the deadline. Today, the risk of non-payment is greater. The strength of the most radical wing of the Republicans in the House of Representatives could allow them to derail the process of approving the new limit. For now, rating agency Fitch has put a magnifying glass on the US debt, which, they say, will lower its rating if an agreement is not reached.