Last Updated: May 12, 2023, 03:00 IST
The Biden administration is playing with the idea of invoking the “public debt” part of the 14th Amendment to prevent a US debt default. (Image: Reuters)
A source familiar with the meetings said this was a positive development and that talks between the two sides were progressing
Crunch talks between US President Joe Biden and senior Republicans have been postponed until early next week to allow staff to continue working, the White House said in a statement Thursday.
A source familiar with the meetings between Democratic and Republican leaders said this was a positive development and that talks between the two sides were progressing, making Friday not the right moment for the leaders to meet.
But the Republican speaker of the House of Representatives, Kevin McCarthy, disputed this characterization, accusing Democrats, including Senate Minority Leader Chuck Schumer, of holding up the deal.
“President Biden and Senator Schumer are stuck on no, they have no plan, no proposed savings and no clue,” he told reporters shortly after the White House announced the talks had been postponed.
Biden “apparently doesn’t want a deal, he wants a default,” he added.
Republicans and Democrats remain sharply divided over the debt ceiling, with Republicans in Congress insisting that Biden agree to significant budget cuts in exchange for support to lift the limit before the country runs out of money to pay its existing bills.
Democrats have been calling for a “clean” increase of the borrowing limit, accusing Republicans of using extreme tactics to try and push their political agenda ahead of the so-called “X-date” — the point at which the US will be unable to meet its financial obligations.
The planned talks between Biden and McCarthy were the second scheduled for this week, as both sides look to avoid the X-date, which US Treasury Secretary Janet Yellen has warned could come as soon as June 1.
Earlier Thursday, the International Monetary Fund warned of severe consequences if the US defaults on its debt.
“Our assessment is that there would be very serious repercussions not only for the US but also for the global economy should there be a US debt default,” IMF communications director Julie Kozack told reporters, encouraging all parties to urgently resolve the matter.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
For all the latest world News Click Here
