The US has not reached an agreement on the debt ceiling.

SGGPO 05/23/2023 11:02

US President Joe Biden and House Speaker Kevin McCarthy said the two sides had a "productive" discussion at the White House on the debt ceiling issue, but did not reach an agreement.

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.

US President Joe Biden (right) and House Speaker Kevin McCarthy discuss at the White House Photo: REUTERS

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.

Source: https://www.sggp.org.vn/my-chua-dat-duoc-thoa-thuan-ve-tran-no-cong-post690767.html