Biden team reports “progress” in US debt negotiations

Democratic negotiators told the president on Friday Joe Biden that they are “steadily advancing” in talks with Republicans aimed at avoid a default of the United States, according to a White House official.

Biden received an update on talks with advisers to House Speaker Kevin McCarthy, Republican, on Friday morning in Japan, where he is traveling for the Group of Seven (G7) summit, officials said. .

“The president’s team informed him that there is constant progress”, according to one of the officials, who did not want to be mentioned.

“The president asked his team to keep pushing for a bipartisan deal and made clear the need to protect programs essential to American workers and the economic progress of the past two years as negotiations move forward.“, said.

“He trusts that Congress will take the necessary measures to avoid the cessation of payments”, he added.

Republicans have refused to vote on raising the debt limit above $31.3 trillion unless Biden and his fellow Democrats agree to spending cuts in the federal budget.

The government of USA it could default on some debts as early as June 1 unless Congress votes to raise the debt ceiling, and economists fear the country could slip into recession.

Biden He cut his trip to Asia short and now plans to return to the United States on Sunday to finish negotiations, eliminating stops in Papua New Guinea and Australia, meant to counter China’s influence in the region.

Meanwhile, White House adviser Steve Ricchetti, budget director Shalanda Young and legislative adviser Louisa Terrell are leading the talks for the government.

A similar showdown in 2011 over the debt limit led to a historic downgrade of the United States’ credit rating, sparking a stock sell-off and raising the government’s borrowing costs.

The current doldrums have made investors nervous, sending the cost of insuring exposure to US government bonds to all-time highs.

According to a Reuters/Ipsos poll conducted on Monday, three-quarters of Americans fear a default will seriously affect families like theirs.