It is less than two weeks until June 1, when the Treasury Department warned that the federal government may be unable to pay all its debts.
The negotiators of the White House and of the congressional republicans about him raising the federal debt ceiling of US$31.4 billion they remained silent this Saturday May 20, after they will fail the meetings on Friday and that the president Joe Biden said in Japan that he believed that a default could be avoided.
There were no meetings scheduled for this day, as reported by Punchbowl News on Twitter, citing multiple sources. Meanwhile, a second meeting interrupted last Friday with neither side citing progress and with negotiators saying they weren’t sure when new meetings would take place. Less than two weeks to go June 1date on which the Treasury Department warned that the federal government might be unable to pay all of its debts.
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The repercussions after the stoppage of the negotiations
Biden He said in Japan late last Friday that he does not lose hope regarding the possibility of reaching an agreement. “I still believe that we can avoid a default and what will we get do something decent“, he told reporters in Hiroshima, where he attended a meeting of leaders of the Group of seven rich countries of the world.
Biden showed himself optimistic even though the White House acknowledged that there is still “serious differences” with Republicanswhich control the House of Representatives. In this sense, the president of the House of Representatives, kevin mccarthyaffirmed that it is necessary to move forward to change the “trajectory” of US government deficit spending and rapidly rising debt.
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AFP
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The republicans they are pushing for it to happen sharp spending cuts in exchange for borrowing limit increase self-imposed by the government, a measure regularly needed to cover the costs of spending and tax cuts previously approved by lawmakers.
The republicans control the House of Representatives by a narrow margin, while the democrats of Biden have a slim majority in the senatewhich makes it difficult to reach an agreement It is approved by both chambers.
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The democrats they were pushing for keep spending at this year’s levels, while the republicans they want to return to 2022 levels. A plan approved by the Camera last month would cut a wide swath of public spending in a 8% next year. The democrats affirm that this would force average cuts of at least 22% in programs like education.
Source: Ambito
