US Debt Ceiling Talks Are Stopped 

The crucial discussions regarding raising the debt ceiling between the US House of Representatives Republicans and President Joe Biden’s administration briefly resumed on Friday before coming to an end with no resolution, according to the Guardian. According to the article, earlier in the day, when House Speaker Kevin McCarthy said that it was time to “pause” talks, negotiations abruptly came to an end. In the evening, the negotiating teams met once more before abruptly ending the session.

The changes are noteworthy because the US has until June 1 to increase its borrowing ceiling, which is now set at $31 trillion, in order to continue paying its obligations.

”At the direction of the speaker of the House, we re-engaged, had a very, very candid discussion talking about where we are, talking about where things need to be, what’s reasonable and acceptable,” Rep. Garret Graves, Mr McCarthy’s lead negotiator, told reporters after Friday night’s meeting. 

”This wasn’t a negotiation tonight. This was a candid discussion about realistic numbers, a realistic path forward, and something that truly changes the trajectory of this country’s spending and debt problem,” he added.

On the other hand, he said “No” when asked whether he was certain that a plan to increase the debt ceiling could be achieved by this weekend. The next meeting’s time has not yet been determined.

The White House has emphasized for months that the country’s credit should not be subject to negotiation, even if Congressional Republicans are seeking budget concessions in exchange for raising the so-called debt ceiling. According to the BBC, the Republican proposal has been dubbed “a blueprint to devastate hard-working American families” by the White House.

President Joe Biden stated last week that he is optimistic that he can achieve an agreement with Republican leaders to prevent a potentially disastrous US debt default.  However, despite weeks of warnings from government representatives and bankers that a default might unleash dramatic effects, including a probable recession and probably worldwide financial contagion, the two sides have continued to be at a standstill.

The independent Congressional Budget Office predicted on Friday that the deadline would be June 15. Treasury Secretary Janet Yellen has warned that a default may happen by June 1.

Press secretary Karine Jean-Pierre stated, “We have serious differences,” at a news conference in Hiroshima. And the dialogue will undoubtedly remain challenging. We’re not unaware of it.  She also questioned the sincerity of House Republicans’ claims that they wanted to reduce the deficit and come to a “reasonable” agreement.

President Biden, however, reaffirmed his position on Saturday and stated that he still thought a default could be averted.

“I still believe we’ll be able to avoid a default and we’ll get something decent done,” Mr Biden told reporters in Hiroshima, Japan, where he is attending a meeting of leaders of the Group of Seven rich nations. He will be back in Washington on Sunday after cutting short his foreign trip. Many Republicans have criticized him for taking the trip to Japan at a key point in the talks.

Source – NDTV

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