• House of Representatives Speaker Kevin McCarthy says President Joe Biden is not adequately negotiating the US debt ceiling, which could result in a default and financial crisis.
• Biden has now agreed to start negotiations with McCarthy, who believes they will reach an agreement before the deadline.
• Biden addressed the nation this morning stating that he believes an agreement to avoid a default is imminent.
Debt Ceiling Negotiations
House of Representatives Speaker Kevin McCarthy says President Joe Biden is not adequately negotiating the raising of the US debt limit, which could result in a dangerously tight deadline to reach an agreement and potentially lead to a financial crisis if no deal is made.
McCarthy has repeatedly criticized the president for not negotiating and expressed his concerns on CNBC about not wanting to be working towards a deadline. He said that he and the president appear to have finally worked out a framework to have productive negotiations and ultimately does not believe a debt default will happen in the end.
President Biden addressed the nation this morning, saying that he believes an agreement to avoid a default is imminent. He stated that both himself and Speaker McCarthy have appointed senior members of their teams to hammer out a deal, which includes cutting subsidies given to big oil and big pharma as well as asking wealthy individuals and large corporations to pay their fair share in order reduce deficits by $3 trillion over the next decade.
Many analysts predict that risk assets like Bitcoin (BTC) would be worst affected should there be no deal reached between Biden and McCarthy regarding raising the US debt ceiling.
While there isn’t much time left until June 1st where negotiations need be agreed upon, both parties are confident they can come up with an effective solution before then so as to prevent any potential defaults or crises from occurring due to lack of negotiation or agreement.