• House of Representatives Speaker Kevin McCarthy says the US is in danger of defaulting on its debt if President Joe Biden does not reach a deal with Congressional Republicans to raise the debt limit before June 1.
• An agreement has been reached between Biden and McCarthy for their respective teams to negotiate a deal, but there is still a tight deadline.
• If a default occurs, analysts predict that risk assets such as Bitcoin would suffer the most.
US Debt Default Looming
House of Representatives Speaker Kevin McCarthy warned that unless President Joe Biden comes to an agreement with Congressional Republicans soon, the US could default on its debt by June 1st.
Negotiations Begin
McCarthy and Biden have agreed to have their respective teams begin negotiations in order to avert a financial crisis. However, time is quickly running out and many analysts worry that risk assets such as Bitcoin (BTC) would be hit hard if a default were to occur.
Speaker Warns of Possible Default
In an interview with CNBC, McCarthy said, “I’ve been on your show many times telling you we should be nervous because the president’s not negotiating…I never wanted to be working towards a deadline.” He added that he was confident an agreement could be reached in time, but was worried about what might happen if it wasn’t.
President Calls for Negotiations
President Biden addressed the nation this morning urging Congress and himself to work together towards reaching an agreement before it’s too late. He said he had proposed plans which would cut subsidies given out by Big Oil and Pharma companies while also asking wealthier individuals to pay more taxes – something he believes will help reduce the deficit drastically over 10 years.
Hope for Agreement Remains
Despite the looming deadline and potential economic fallout from a possible debt default, both parties remain hopeful that they can come together and reach an agreement in time. With negotiations now underway between top members from both sides of government, it appears they are one step closer towards averting disaster – hopefully for good.