Negotiations on public debt ceiling still have many disagreements

The meeting comes after President Biden ended his trip to Asia early to try to reach a deal to resolve the debt ceiling crisis.

At the start of his meeting with House Speaker McCarthy, President Biden expressed optimism that progress would be made in the talks, stressing that both sides had an important responsibility to resolve the impasse. After the meeting, Mr. Biden assessed that the talks with Mr. McCarthy were productive, but the two sides still had points of disagreement.

Similarly, speaking to reporters, House Speaker McCarthy also said that although no agreement was reached, the discussion was “productive” on the points of disagreement. Mr. McCarthy also said that negotiators would work through the night to narrow the differences, and affirmed that he and President Biden would discuss “daily” to find a way to resolve the problem.

Negotiations between Republicans and Democrats over raising the debt ceiling are more urgent than ever. US Treasury Secretary Janet Yellen has warned that the government could run out of money to pay its bills and default on its debt, possibly as early as June 1, with a debt of more than $31 trillion, if the debt ceiling is not suspended or raised.

The two sides have different views on the issue. Republicans argue that raising the debt ceiling cannot be done without drastic measures to reduce the government deficit. These include cutting spending on Social Security and limiting access to Medicaid, the health care program for the poor.

The Biden administration, meanwhile, has opposed the measures, instead proposing some spending cuts and tax increases for the wealthiest people and corporations that currently enjoy large tax cuts. Republicans have rejected the tax increases.

It is unclear whether a deal can be reached before June 1. President Biden has raised the possibility of using a constitutional provision in the 14th Amendment that allows the president to raise the debt ceiling on his own.

Experts warn that a US government default would lead to catastrophic consequences for the country's economy , especially unemployment, bank interest rates and the real estate market, not to mention the domino effect on the global economy.

VNA

Source: https://www.qdnd.vn/quoc-te/tin-tuc/my-dam-phan-ve-tran-no-cong-con-nhieu-bat-dong-729006