McCarthy: problems persist in debt ceiling talks

2023-05-25 17:55:00

The president of the House of Representatives from United States, Kevin McCarthysaid that problems persist in negotiations with the Biden Administration on the increase of the federal debt limit as the clock ticks and the Treasury is getting closer to running out of cash.

The parts still they have no plans for another negotiating session on Thursday, although that might changesaid officials from both the White House Like the Republicans.

McCarthy told reporters on Thursday that the teams achieved “some progress” towards an agreement on Wednesday. “There are still pending issues. I have directed our team to work 24/7 to resolve this issue.”

Uncertainty over the debt ceiling generates large sales of “junk bonds”

The California Republican added: “I don’t think everyone is happy at the end of the day. That’s not how this system works.” He declined to specify when or where the next round of negotiations will take place. On Fox News, he said: “I don’t know if we can reach an agreement today”.

financial markets are showing signs of stress as talks progress. Treasury Secretary Janet Yellen has said her department might run out of cash on June 1.

On Wednesday, Fitch Ratings placed the US AAA rating. in credit surveillance for a possible reduction. The US lost its AAA rating from S&P Global Ratings during a similar partisan impasse over the debt limit in 2011.

The United States takes special measures to avoid defaulting on its debt

The The White House and Treasury said Fitch’s move demonstrates the urgency of reaching a rapid resolution of the impasse. But McCarthy said he isn’t concerned regarding Fitch’s announcement and that dealmakers don’t need Fitch to remind them of the importance of closing the deal.

Only a week to go June 1 And, if a deal is reached, it will need both houses of Congress to act fast to get to President Joe Biden’s desk on time.

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