US President Joe Biden announced that talks with Republicans to prevent defaulting on state debt are still stuck and have not progressed. This came in his response to a journalist in Philadelphia, whether there was any progress in consultations about the situation with raising the national debt ceiling, according to what was reported. The White House press service quoted the head of state as saying, “No.”
The US President’s administration has previously warned of catastrophic consequences for the US economy, including huge job losses, if the US defaults on its debts.
In January, the United States exceeded the statutory debt ceiling of $31.4 trillion, after which the country’s Treasury Department had to use emergency measures to continue its financial operations, and the US administration has been urging Congress in recent months to raise the debt limit.
The Republicans who control the House of Representatives agree to raise the national debt ceiling, but are subject to significant spending cuts in the budget, while the White House rejected the demands, saying: It is ready to discuss spending cuts, but lawmakers must raise the debt ceiling unconditionally.
In turn, Treasury Secretary Janet Yellen warned Congress that the administration may run out of emergency measures regarding achieving the national debt ceiling as early as June 1.
She has repeatedly emphasized that in this case, the country will face a default on the federal debt, which will lead to an “economic catastrophe” in the United States, and may also cause shocks in the global economy. In order to prevent this, Biden and Republican leaders in Congress agreed to hold consultations. .