Biden and McCarthy negotiated in the White House to avoid bankrupting the United States. If it is not possible to agree to raise the debt ceiling, the government could run out of money next week. This will have a negative impact on the country’s economic prospects and could lead to serious turmoil in the financial markets.
I think our meeting today went better than ever. We still have some disagreements in principle, McCarthy said, according to the Financial Times, but they have been very helpful. He added: They know that the deadline is urgent and are ready to negotiate with the president every day until an agreement is reached. Biden later confirmed this in his statement
They do not count on the possibility of state bankruptcy, the only solution is a bipartisan agreement on the debt ceiling.
Finance Secretary Janet Yellen warned again on Monday afternoon that in the absence of a deal, the government could run out of money at the beginning of June, or even next week, and it might not be able to pay back some of the expired government securities, which in practice would mean the state going bankrupt. . There are still ten days left until the June 1 deadline, and until then, Congress and the Senate must approve the agreement, and the president must sign it. The debate now revolves around the fact that opposition Republicans only want to raise the debt ceiling of $31.400 billion if the government in return makes deep spending cuts, but Biden has so far refused to do so.
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