Debt limit talks in the US hit a stalemate again

Debt-limit negotiators appointed by Speaker of the U.S. House of Representatives Kevin McCarthy have left their talks with White House officials, casting doubt on reaching an agreement on the debt limit.

Republican representative Garret Graves said White House officials paused on the grounds that the negotiations were not productive, arguing it was “completely unreasonable”.

Graves noted that he did not know when the negotiators would meet again.

McCarthy, on the other hand, stated that the lack of action from the White House regarding the debt limit talks was the reason why the negotiations stalled.

Senate Minority Leader Mitch McConnell also posted on his social media account, “(US President Joe) Biden waited months before agreeing to negotiate a spending deal with McCarthy. They’re the only two who can come to an agreement. It’s time for the White House to get serious. ” used the phrases.

“Deal is still possible”

A deal is still possible if both sides accept that they can’t get everything they want, White House officials said in a statement.

In a letter sent to McCarthy to share updated information on the debt limit, US Treasury Secretary Janet Yellen warned that the country could face a cash shortage if the debt limit is not increased or suspended by June 1.

U.S. President Joe Biden also met with Congressional leaders this week to discuss the debt limit, and said they had appointed senior staff to hold talks with McCarthy.

McCarthy said yesterday that an agreement in principle could be reached in debt limit negotiations this weekend and could be voted on in the House of Representatives next week.

debt limit dilemma

In the US, the federal government has reached the $31.4 trillion debt limit that could lead to default.

The debt limit, or debt ceiling, means “the upper limit on the amount of money the U.S. government can borrow to pay off its debts.”

Republicans, who hold a majority in the House of Representatives, are in favor of significant spending cuts in debt-limit negotiations. Democrats insist on increasing the debt limit and reject Republican proposals to cut certain spending.

There are concerns that the debt limit issue, which has become a deadlock between Democrats and Republicans, will shake the markets. As recession expectations rise in the US, the two-party showdown over the debt limit carries more risk than ever before.

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