“The Threat of Default in the US: Progress in Talks between Biden and McCarthy”

“Speaker Kevin McCarthy and I have had some productive conversations and our staff continues to meet during our conversation and they are making progress. I have made it clear many times that defaulting on our national debt is not an acceptable option,” Biden said.

He noted that Congressional leaders agreed that there would be no default in the US.

“I want to make it clear that the talks that Speaker McCarthy and I are having are about the broad lines of what the budget will look like, not about a default. It’s about America’s competing visions,” the president said.

The threat of default in the US

Treasury Secretary Janet Yellen said the US may not be able to pay its bills as early as June 1st. The country is facing the possibility of an unprecedented default that could have catastrophic consequences for both the United States and the world.

For the sake of negotiations on increasing the national debt, US President Joe Biden has reduced the program of his trip abroad. However, the White House said that even in the event of a default, the United States will be able to provide Ukraine with military assistance until the end of the fiscal year at the expense of funds allocated by Congress.

It is worth noting that earlier Biden assessed the negotiations with the Speaker of the House of Representatives Kevin McCarthy on raising the US national debt limit as “optimistic”.