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US President Joe Biden and Speaker of the House Kevin McCarthy said the two sides had a "productive" discussion at the White House on the issue of the public debt ceiling, but no agreement was reached.
Negotiations between Republicans and Democrats on raising the public debt ceiling are more urgent than ever. US Treasury Secretary Janet Yellen has warned that the government may run out of capacity to pay for operations and risk an early default, possibly on June 1, with more than $6 trillion in debt, if not suspend or raise the ceiling of public debt.
The two sides hold different views on this issue. Republicans argue that it is impossible to raise the public debt ceiling if the government does not take drastic measures to reduce the budget deficit. These measures include cutting spending on social security and limiting access to Medicaid, a program that subsidizes health care services for the poor.
Meanwhile, the Biden administration opposes the measures, instead introducing a plan to reduce some spending and increase taxes on the richest people and corporations that currently enjoy large tax breaks. The Republican side did not accept this tax increase measure.
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US President Joe Biden (right) and Speaker of the House Kevin McCarthy discuss at the White House Photo: REUTERS |
It is not clear whether there is a possibility of reaching an agreement between the two sides before June 1. President Biden has mentioned the possibility of using a 6th Amendment constitutional provision that would allow the president to raise the debt ceiling on his own.
Experts warn that the US government's default will lead to catastrophic consequences for the US economy, especially unemployment, interest rates and the real estate market, not to mention the domino effect. for the global economy.
