Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Biden and McCarthy seek to break debt ceiling impasse

Biden and McCarthy seek to break debt ceiling impasse

President Joe Biden and top Republican Kevin McCarthy have spoken on the phone, in a change of tone in stalled talks on lifting the US debt ceiling.
McCarthy said his call with Biden, who was returning from the G7 summit in Japan, had been “productive” and the two would meet on Monday.

The two sides remain at odds over budget cuts demanded by the Republicans as a condition for raising the ceiling. Failure to do so by June could result in the US defaulting on its debt.

That would mean the federal government could not borrow more money or pay all its bills. The Treasury Department has warned that a default could begin on June 1.

Such an outcome would cause chaos in financial markets and lead to further rises in interest rates.

As he left Japan on Sunday, Biden told reporters that proposals by Republicans — who control the House of Representatives — were “simply, quite frankly, unacceptable”.

He added: “It’s time for Republicans to accept that there is no bipartisan deal to be made solely, solely on their partisan terms. They have to move as well.”

But Biden also said would be willing to cut spending to reach a deal and he would speak McCarthy on his way home.

The president cancelled foreign visits that were due to follow the three-day summit in Hiroshima, in order to deal with the impasse over the federal debt.

After the call, McCarthy told reporters the discussions had been positive. “I think we can solve some of these problems if he understands what we’re looking at,” he said.

A White House official said staff members from both sides would meet this evening “to discuss remaining issues”.

Meanwhile, Treasury Secretary Janet Yellen said on Sunday that 1 June remained a “hard deadline”. She told NBC that without a deal “we expect to be unable to pay all of our bills in early June”.

Failure to lift the ceiling could see the US suspend its social insurance payments and the salaries of federal and military employees. Default also threatens to wreak havoc on the global economy, affecting prices and mortgage rates in other countries.

The impasses has rattled financial markets. On Friday the Dow ended down 0.3%, the S&P 500 dipped 0.1% and the Nasdaq slipped 0.2%.

In exchange for support for raising the debt ceiling, Republicans are demanding budget cuts to the tune of $4.5 trillion, which includes scuppering several of Biden’s legislative priorities.

The White House has called the Republican proposal “a blueprint to devastate hard-working American families”, although it has indicated that it may make some budgetary concessions.

Both President Biden and McCarthy are under pressure from the left and right flanks of their respective parties to hold the line.

With a one-seat Democratic majority in the Senate and Republicans in narrow control of the House, a deal has so far proven elusive.
Newsletter

Related Articles

0:00
0:00
Close
Putin Warns NATO and US on Ukraine Using Long-Range Weapons
Fragmented EU Defence Industry Needs Urgent Coordination
Political Uncertainty Weakens Germany's Investor Confidence
European Car Makers Struggle in the Electric Vehicle Market
German Chancellor Olaf Scholz Emphasizes Economic Necessity of Immigration
Bill Gates Warns of Imminent Threats: War and Pandemics
Germany's Foreign Ministry humorously countered U.S. Republican presidential candidate Donald Trump's assertion that all immigrants eat pets, in a post on the social platform X
Kamala Harris Wins Post-Debate Survey Against Donald Trump
Impact and Aftermath of 9/11 Attacks on the US and the World
Neighbours Criticise Germany Over Extended Border Controls
EU Court Orders Google to Pay €2.4 Billion Fine
Apple Ordered to Pay Ireland €13bn in Unpaid Taxes
UK Upside Down: Woman Attacked, Police Focus on Her Language Instead of the Attacker
Internet Surpasses TV as UK's Leading News Source
Top Former US Military Leaders Endorse Kamala Harris, Criticize Trump
Australia Implements Minimum Age for Social Media Use
Kim Jong Un Announces Increase in North Korea's Nuclear Arsenal
JUST WHEN YOU THOUGHT THE UK COULDN'T SINK ANY LOWER… NOW UK WANT TO SUMMON ELON MUSK OVER "TOO MUCH FREE SPEECH" ON X
RUMBLE BLOCKED IN BRAZIL: A BLOW TO FREE SPEECH
Is it artificial, or intelligent?
CDC: U.S. Fertility Rates Hit Historic Low
Apple's "New" iPhone 16: Same Phone, New Number
Swiss politician lectures a German politician about democracy
Germany has just announced that they will be closing their borders and introducing border controls to protect the country
If ID Is a Must for So Many Small Things, Why Not in Elections?
Make Army Real Again
China just arrested the billionaire founder of a free speech messaging app for not moderating and censoring the content to their liking.
Viktor Orban’s Bold Stand on Immigration
Greece to Impose Levy on Cruise Passengers Visiting Santorini and Mykonos
Here’s What a 240 km/h Typhoon in Vietnam Looked Like
A shift in how people consume news and information is happening!
Former Republican Congressman Mike Rogers: “We’re going to make this election too big to rig.”
Hungary was fined €200 million by the EU for opposing illegal immigration
China Unveils AI App Inspired by Iron Man's Jarvis
Iranian Plots to Kill Jews in Europe Unveiled
Public Health Data Debate, Kidney Transplants, Wildfires, Typhoon Impact, and Controversial YouTube Bans: A Diverse Week in News
Sinner Makes History, Italy Upsets France, Ronaldo's 900th Career Goal, and More in Sports Highlights
Porn streamer OnlyFans paid owner $630mn in dividends
China ends tariffs on all goods exported to China from the poorest countries in the world it has diplomatic ties with, including 33 African nations
Ukraine's Major Government Reshuffle: Andrii Sybiha Appointed New Foreign Minister
WALZ'S FOR TRUMP": Gov. Tim Walz’s family is proudly expressing their 'strong support' for former President Trump
In a public interview yesterday, Putin openly said he wants Kamala Harris to win the 2024 election.
French Woman Testifies in Landmark Rape Trial
Michel Barnier Appointed as Prime Minister of France
Britain Plans to Combat 700 Years of Nepotism in Its Governmental System by Ending Hereditary Peerships in the House of Lords
The art technique of Grandma Mei Ling, age 82
Hungary's Dependence on Russian Oil
Mongolia Refuses to Arrest Putin Despite ICC Warrant
France Pilots Mobile Phone Ban in Schools
Hungary's Quest for Energy Stability Amid Global Tensions
×