US debt ceiling stalemate deepens.

While the US Senate did not give a signal to take action to eliminate the looming debt ceiling crisis; Republicans rejected calls for an unconditional increase to the $31.4 trillion cap, while Democrats ignored ideas from the talks.

One day after the US House of Representatives approved the proposal to raise the debt limit proposed by the Republicans and reduce federal spending, the impasse continues between the representatives of the two political wings; This brings the possibility of the US economy defaulting for the first time in history and disrupting financial markets on a global scale.

CAUSED A SHARP FALL IN SHARES

House Speaker Kevin McCarthy had proposed the legislation in hopes of opening discussions with US President Joe Biden, a Democrat, on tax cuts and raising the ceiling needed to cover the costs of spending previously approved by the House. Congress.

The long-term disagreement over the debt ceiling, which hit the agenda in 2011, caused the US credit rating to be downgraded, raising borrowing costs and causing inventories to fall sharply. It is claimed that there are already warning signs on Wall Street.

I DON’T KNOW HOW LONG THEY HAVE

Politicians don’t know exactly how much time they have left to act.

The date that the US Treasury Department will be unable to make payments may be in June or later in the summer.

It is expected that the Treasury will notify Congress in the coming days of the new date on which it will not be able to make payments after evaluating its tax collection. (Reuters)