• House of Representatives Speaker Kevin McCarthy says President Joe Biden is failing to adequately negotiate the raising of the US debt limit, and it should make people nervous.
• Many analysts predict a financial crisis if a deal is not reached, and that risk assets like Bitcoin (BTC) would fare the worst.
• President Biden addressed the nation this morning, saying 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 doing enough to negotiate the raising of the US debt ceiling as a looming deadline puts pressure on parties to reach an agreement. Bloomberg commodity strategist Mike McGlone predicts that if an agreement isn’t reached soon, it could lead to a financial crisis with risk assets like Bitcoin (BTC) taking the biggest hit.
McCarthy’s Criticisms
McCarthy has repeatedly criticized Biden for not negotiating with Republicans in time and now there is very little time left before a potential default happens. He said on CNBC that he never wanted negotiations to be so close to the deadline but that they have finally figured out a framework to work together productively and hopefully come up with an agreement by June 1st. He expressed confidence that no default would occur in the end.
Presidential Address
This morning, President Biden addressed the nation about his efforts to prevent a debt default from occurring. He mentioned his success in reducing deficit spending over his first two years in office and proposed budget cuts targeting wealthy individuals and large corporations as well as subsidies given to Big Oil and Big Pharma companies. To ensure progress was made towards avoiding a default, both he and McCarthy agreed to appoint senior members from their teams who will negotiate towards finding an agreement by June 1st.
McCarthy’s Final Thoughts
In conclusion, McCarthy stated once again how important it was for Biden to agree on negotiations as this was something he used to specialize in before becoming president. Ultimately, both parties are confident that they can come up with an agreement before June 1st in order to avoid any sort of financial disaster from occurring due to failure reaching an agreement before then.
Conclusion
The US debt limit must be raised through negotiation between President Joe Biden and House of Representatives Speaker Kevin McCarthy in order for there not be any sort of financial crisis or defaulting on debts owed by America . Although some analysts predict bad outcomes if an agreement isn’t met soon , both sides remain confident they can come up with solution before June 1st .