Debt ceiling negotiations between the White House and Republicans continue to be deadlocked as both sides trade barbs.
White House spokeswoman Karine Jean-Pierre said on May 20 that the proposals put forward by the Republican Party late on May 19 were a "major step backward", extremely partisan and could never be passed in both US houses of Congress.
"The MAGA-influenced Republican leadership is threatening to push our country into default for the first time in history if their extreme partisan demands are not met," Jean-Pierre said, referring to the far-right wing of the Republican Party that follows Mr Trump's "Make America Great Again" agenda.
Meanwhile, House Speaker Kevin McCarthy, the top Republican, tweeted on May 20 that the White House was "going backwards" in the negotiations.
"It's a shame that the far left of the Democratic Party is in control, especially while President Joe Biden is overseas," he wrote, referring to the US President's trip to Japan for the G7 summit.
"We are not asking for anything to avoid default. You are the only ones trying to make it a bargaining chip," White House spokesman Andrew Bates tweeted on May 20, criticizing the Republicans.
House Speaker Kevin McCarthy answers reporters at Capitol Hill, Washington, DC on May 17. Photo: AFP
The US hit its $31.4 trillion debt ceiling set by Congress in January, and the Treasury Department has warned that the US could default on its debt on June 1, causing disruption to the world's largest economy and potentially global repercussions.
Republicans, who control the House of Representatives, have demanded deep budget cuts as a condition for raising the debt limit. The White House is trying to soften those demands, arguing that the debt ceiling issue is being weaponized for political gain.
Hopes for a deal between the two sides were dealt a blow on May 19 when Republicans announced a “pause” in negotiations. However, talks resumed hours later. President Biden is scheduled to return to the United States from Japan on May 21, after canceling plans to visit Papua New Guinea and Australia.
Economists warn that a default would have serious consequences for the US economy and social security. The US government could not pay its debt obligations, the financial market would be affected, and the Treasury Department could have to delay payments to about 66 million people who receive monthly benefits.
Thanh Tam (According to AFP )
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