The president of United States, Joe Bidenand Republican lawmaker Kevin McCarthy will meet Monday to discuss raising the borrowing limit, just 10 days before the Treasury begins to run out of money, in an unprecedented default that would hit the global economy. .
The Democratic president and the speaker of the Republican-controlled House of Representatives will meet at 2130 GMT at the White House.
Any deal to raise the debt limit above US$31.4 trillion must be approved by both houses of Congress. The US Treasury has warned that it may be unable to pay all of its bills as of June 1.
Staff members from both sides met again on Capitol Hill ahead of the meeting, US media reported, the morning after a two-and-a-half hour session, which McCarthy described as a callproductive” with Biden.
Biden was also upbeat, telling reporters in a Sunday conversation with McCarthy: “Went well”.
If the debt ceiling is not raised, a default would ensue, rattling financial markets and driving up interest rates on everything from car payments to credit cards. Uncertainty is already weighing on investors and stocks.
the republicans of McCarthy control the House with 222 congressmen to 213, while Democrats from Biden they have a majority in the Senate of 51 to 49, which makes it difficult to reach a bipartisan agreement that ensures enough votes to pass.
Republicans are pushing for deep spending cuts — except on defense, where they want increases — in exchange for backing a self-imposed increase in the government’s borrowing limit, which would cover the costs of already passed tax and spending cuts.
Democrats want to keep spending at this year’s levels, while Republicans want to return to 2022 levels. A plan passed by the House last month would cut a wide swath of public spending by 8% next year.
Biden He has said that he would consider spending cuts along with tax adjustments, but that the latest offer from the Republicans was “unacceptable”.
Source: Reuters
Source: Gestion
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