It has been several days since talks of raising the US Debt ceiling were a factor in market fluctuation. May it be stocks or commodities.
In the latest update, the White House and the Republican negotiators met again to resolve a herculean problem involving raising the government’s $31.4 trillion debt ceiling.
On the debt ceiling discussion, the Democrats and Republicans in control of the House of Representatives, led by Speaker Kevin Mccarthy, remained divided.
The Democrats argued that wealthy American citizens and businesses should pay more taxes, whereas the Republicans wish for spending cuts.
The US treasury secretary, Yellen stated “It was highly likely that cash would run out by early June”. She also goes on to mention that the treasury would be unable to pay for all the government obligations. However, US treasury secretary, Yellen left things unclear concerning when can the treasury funds be finally at a point, unable to pay for government affairs.
Coming back to the meeting between Biden and the US House speaker Mccarthy, he quoted “There was no agreement yet”.
The US House spoke further when on air to say “The problem in front of the nation is of spending, not revenue”.
In relation to this news, the White House has agreed to cut extra funding for Covid research.
However, the US House speaker, Mccarthy ended on a hopeful note stating
“American citizens do not need to prepare or worry about a default.”
Even with both sides divided, they have found common ground like permit reforms for energy projects and ‘fund’ cuts for covid relief funds. Furthermore, there are discussions concerning imposing stricter work requirements on 2 popular public benefit programs that aim at helping poverty-ridden Americans.
He ended the conversations stating that he is confident that Biden want to make a deal.
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