Democratic US President Joe Biden and Republican Speaker of the House of Representatives Kevin McCarthy again negotiated on Monday to raise the upper limit of the public debt and this time they did not reach an agreement either.
After negotiating to raise the debt ceiling, which is currently set at about $31.4 trillion, both said the conversation was the most productive yet.
“I believe we can still reach an agreement. I believe we can succeed,” McCarthy said, sounding a little more optimistic for the first time ever. Indeed, Biden has publicly agreed that he will advocate for the reduction of budget spending, which is what the Republicans are demanding. But he still rejects their bill, which, in his opinion, would cut spending too much at the expense of many social programs.
Republicans, however, demand a reduction in budget spending by more than 4,000 billion dollars, which would make several of Bidnova’s legislative priorities impossible administrationreports the BBC.
McCarthy said both he and Biden told negotiators to work day and night to reach an agreement. “It seems to me that the meeting was productive due to professionalism, mutual sincerity and the desire to try to find a common position,” said McCarthy, who will have to convince representatives with more extreme views about the deal in republican ranks.
Leading Democrats in told the House of Representatives that they were not present at the meeting, but later said that their party’s negotiators had told them that the discussion had been useful.
The leader of the Democrats in the House of Representatives Hakeem Jeffries he rejected certain Republican demands, such as border wall funding and a 10-year spending freeze. However, he agreed with the proposal that spending could be frozen at the current level.
“We are optimistic that we can make progress because we both agree that a deal is needed. The consequence of not paying our bills would be a real deterioration in the economic well-being of the American people. In fact, that would happen to the rest of the world as well. We also agree that we have to reduce the deficit I would add that I have in reduced by 1700 billion dollars in the first two years of his mandate. This is important,” Biden emphasized even before the meeting.
The government may run out of money on June 1
The US government can, according to the finance minister’s warnings Janet Yellen as early as June 1, the money to pay the debts will run out if Congress does not raise the debt limit. The US is in something special to the world, as other countries do not have such legal requirements to increase the permissible limit of public debt. About the limit in The US usually discusses when it is in The White House is held by a Democrat, while the Republicans hold it in congress the possibility of blocking.
However, Biden has another option of action, namely invoking the 14th Amendment to the US Constitution, which prohibits the credit put the credibility of the US into question. However, he does not want to take advantage of this opportunity, because then it would mean cooperation with the Republicans in even more difficult or completely impossible for Congress.