President Joe Biden and key members of both Republican and Democratic parties are set to meet this week to address the $31.4tn U.S. debt and avoid default before the end of May.
The President is calling on lawmakers to raise the federal government's borrowing limit without conditions, but Republican House Speaker Kevin McCarthy has said that his chamber will not approve any deal that does not cut spending to address a growing budget deficit.
Analysts do not expect an immediate deal to avert a historic default, which the Treasury Department has warned could come as soon as June 1.
In the meantime, worries about the standoff have already started to weigh on financial markets, but a default would have a far more immediate effect on average Americans.
Republican lawmakers are demanding spending cuts before they agree to raise the federal government's borrowing limit, a stance that has set them against the Democratic Party.
This has led to a deadlock over the $31.4tn U.S. debt, with analysts predicting that there will be slow progress in the ongoing negotiations.
President Biden insists that raising the debt ceiling should not be linked to budget talks, as the two are unrelated. Biden is calling on lawmakers to raise the federal government's borrowing limit without conditions, to cover the costs of spending and tax cuts already approved by Congress.
Quadri Adejumo covers World News, Health, Climate & Humanitarian.
0 Comment(s)
SPONSORED
HEADLINE
TRENDING