Biden ‘confident’ deal can be reached with Republicans on debt ceiling
Financial Times
23-05-17 17:19
US President Joe Biden believes that a potential US debt default can be avoided by making a deal with Congress. Biden shared that his recent meeting with Kevin McCarthy, Republican Speaker, was “civil and respectful". He said that all parties understood the “consequences of the failure to pay our bills”. Janet Yellen, Treasury Secretary, has already warned that a default could happen as early as 1 June if Congress did not take any action to increase the borrowing limit. The fiscal stand-off had become a critical threat to the global economy and finance systems. Biden shortened his international trip to Japan to work on the debt limit negotiations in Washington. The White House and Republicans in Congress are discussing a fiscal deal with limits to discretionary spending over the next several years. Republicans are putting pressure on adding new work requirements for the government's large anti-poverty schemes.