US Debt Limit Talks Stalled Again
Debt limit negotiators appointed by US House Speaker Kevin McCarthy have walked out of talks with White House officials, casting doubt on reaching a debt limit deal.
Republican Rep. Garrett Graves said White House officials stopped on the grounds that the negotiations were unsuccessful and argued that it was “totally unreasonable.”
Graves said he did not know when the negotiators would meet again.
McCarthy, on the other hand, claimed that the White House’s inaction regarding the debt limit talks was the reason the negotiations stalled.
Senate Minority Leader Mitch McConnell also shared on his social media account: “(US President Joe) Biden waited for months before agreeing to negotiate a spending deal with McCarthy. They are the only two who can reach an agreement. It is time for the White House to get serious.” he used his statements.
“THE AGREEMENT IS POSSIBLE”
A deal is still possible if both sides accept they can’t get everything they want, White House officials said in a statement.
In a letter sent to McCarthy to share an update on the debt limit, US Treasury Secretary Janet Yellen warned that the country could face a cash shortage if the debt limit is not increased or is suspended before June 1.
US President Joe Biden also met with congressional leaders this week to discuss the debt limit, saying they had appointed senior staff to hold talks with McCarthy.
McCarthy said yesterday that an agreement in principle could be reached in the debt limit negotiations this weekend and could be voted on in the House of Representatives next week.
DEBT LIMIT DIFFERENCE
In the US, the federal government has reached the $31.4 trillion debt limit that could lead to default.
The debt limit, or debt ceiling, means “the upper limit of the amount of money the US government can borrow to pay its debts.”
Republicans, who have a majority in the House of Representatives, favor major spending cuts in the debt limit negotiations. Democrats insist on raising the debt limit and reject Republican proposals to cut certain spending.
There is concern that the debt limit issue, which has become an impasse between Democrats and Republicans, will rock markets. As US recessionary expectations rise, the two-party standoff over the debt limit carries more risk than ever. (AA)