Tick, tock. A scheduled Friday meeting on public debt between Joe Biden and Republican House of Representatives boss Kevin McCarthy has been pushed back to “early next week,” a White House spokesman said Thursday. Treasury Secretary Janet Yellen has warned that the United States could find itself in historic debt default on June 1.
This postponement is “positive”, assured a source close to the discussions, “the teams are continuing their meetings and it was not the right time to involve the leaders” at the highest level.
But the Republican tenor delivered another story. Joe Biden has “no plan”, “apparently he does not want an agreement, he wants a default”, said Kevin McCarthy during a press conference.
“Serious repercussions” in the event of default, according to the IMF
The IMF expressed concern on Thursday of the “serious repercussions” on the world economy that a default in payment by the United States would have, if a political agreement is not reached very quickly.
The Democrats, camp of the American president, and the Republicans, masters of one of the chambers of Congress, are engaged in a showdown over the raising of the American debt ceiling, accusing each other of taking the world’s largest economy ” Held hostage “.
This legislative maneuver is essential so that the world’s largest economy can continue to borrow and pay its bills, its officials and its creditors.
Trump favors default
Former President Donald Trump joined the debate by urging Republicans, over whom he retains immense influence, on Wednesday to “cause a default” if Democrats do not grant them “massive cuts” in spending. .
Joe Biden, for his part, is calling for an unconditional increase in the debt ceiling, arguing that for a very long time, including under the presidency of his predecessor, Congress had voted in this direction without any particular debate.
The American president had already brought together the Democratic and Republican leaders of the Senate and the House of Representatives, including Kevin McCarthy, on Tuesday, without finding a solution.