US President Joe Biden, a Democrat, on Wednesday expressed confidence about reaching a deal with his Republican counterparts to reach a deal to avoid a catastrophic US debt default. The said default, may happen by as early as June 1, if the deadlock between two sides over US debt ceiling is not solved soon.
“I am confident that we will get the agreement that we need on the budget and that America will not default,” Biden said at the White House on Wednesday, shortly before he left for Japan for a meeting of the Group of Seven (G-7) leaders.
Joe Biden and the US congressional leaders, including the House Speaker Kevin McCarthy have held two rounds of face-to-face talks to reach an agreement on a deal to raise Washington’s borrowing limit that will allow the country to pay for its existing commitments as well as the obligations.
US debt ceiling row: The potential timeline of default
While the Congressional Budget Office has forecast a US default on its debts by June 15, the Treasury Secretary Janet Yellen on Monday said that the United States could begin defaulting on its debts “potentially as early as June”.
On Wednesday, McCarthy said that the time was running out to find a deal.
“Our timeline is short”, McCarthy told reporters on Wednesday, adding that Joe Biden and Democratic Senate Majority Leader Chuck Schumer had “finally backed off the insane, irrational, unsensible idea that you just raise the debt ceiling”.
ALSO WATCH | What is the US debt ceiling & what happens if it isn’t raised?
Describing a potential debt default as ‘Biden default’, McCarthy said that while he is optimistic about the ability of both Democrats and the Republicans to work together, “the only question of whether we have a Biden default is the president himself.”
US potential debt default: It’s Democrats Vs Republicans
The Republicans continue to insist that Biden must agree to significant spending cuts in exchange for their support to raise the ceiling. The Democrats have called for a “clean” increase of the borrowing limit with no strings attached.
Democrats have accused Republicans of using extreme tactics to push their political agenda ahead of the so-called “X-date” at which the United States starts defaulting on its debts because the government has run out of money.
Meanwhile, more than 140 top US chief executives sent a letter to Biden and congressional leaders on Tuesday stressing the need for an agreement.
“We strongly urge that an accord be reached quickly so that the country can avert this potentially devastating scenario,” the letter signed by the CEOs from Pfizer and Morgan Stanley, among others, said.
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