US President Joe Biden met Congress leaders of both the ruling parties on Tuesday.
According to the White House, US President Joe Biden is confident about the ongoing discussions to increase the debt limit.
Biden met Congress leaders of both the ruling parties on Tuesday.
House Speaker Kevin McCarthy, a Republican, told reporters there was still a lot of work to do. However, McCarthy announced that he expected an agreement by the end of this week as well, although nothing has been finalized yet.
The President also said that he believed that the parties would reach an agreement. Biden stressed that neither side will get everything they want.
Raising the debt ceiling is a bone of contention between the Republican-led House of Representatives in Congress and Democratic President Biden’s administration. If the withdrawal is not made, the United States will default on its debt service costs for the first time in its history.
Treasury Secretary Janet Yellen, a Democrat, has warned that the limit could come as early as June. On the other hand, the nonpartisan Congressional Budget Office predicts that the limit will be reached in mid-June.
The finance ministry has also warned the country of dire consequences if it is unable to pay its bills. In this case, the United States would not be able to pay federal workers and interest rates would rise. Its consequences will also be felt in global markets.
Republicans have demanded that Biden agree to significant spending cuts in exchange for Republican support for raising the debt ceiling.
Democrats, on the other hand, have accused Republicans of using excessive means to push their case.
On Wednesday, President Biden will fly to Japan for the G7 summit. He was to visit Papua New Guinea and Australia after Japan, but the president will return to the United States on Sunday because of the debt ceiling crisis.
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