President Biden may unilaterally respond to the crisis, "deadline" is coming

US President Joe Biden and US House Speaker Kevin McCarthy met on May 22 to discuss the debt ceiling issue, after a positive phone call.

US President Biden said that the White House and congressional leaders in a recent meeting agreed that the country should not be allowed to default on its debt. (Source: Shutterstock)

Responding to the press, Mr. McCarthy said there have been positive discussions about resolving the debt ceiling crisis.

A White House official confirmed the May 22 meeting but did not give a specific time.

Previously, on May 21, Mr. Biden said he was willing to cut spending along with tax adjustments to reach an agreement, but the latest proposal on the Republican Party's debt ceiling was "unacceptable."

In addition, the US President mentioned the right to use the 14th Amendment on the public debt ceiling.

Responding to reporters' questions in Hiroshima, Japan, President Biden said he could use the above power to unilaterally deal with the debt ceiling crisis. However, this could cause legal controversy and lead to default.

"The White House and congressional leaders in a recent meeting came to an agreement that the country should not be allowed to default," he added.

We're less than two weeks away from June 1 - the date the Treasury Department warns the federal government may not be able to pay all its debts.

Also on May 21, US Treasury Secretary Janet Yellen emphasized that the “deadline” to raise the public debt ceiling is still June 1, when the possibility that the government can hold out until June 15 is very low, with many bills due for payment.

Failure to raise the debt ceiling would trigger a default, creating chaos in financial markets.

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