As the debate and discussion regarding the debt ceiling of the United States government progresses, President Joe Biden and the Speaker of the House of Representatives Kevin McCarthy met together again on Monday for a one-on-one negotiation on the topic.
The meeting which lasted almost an hour still ended without a clear decision but both leaders shared an optimistic opinion regarding the discussion. Even though there are different issues that still remain unsolved, both parties have an optimistic stand on where thighs are now.
In his statement before the meeting with McCarthy, President Joe Biden stated that even though there are differences in the opinions and other concerns about the issue on both sides it was possible to reach a sensible solution very soon.
The President shared the hope of being able to get where they have to, in order to solve the problem even though there were disagreements on issues from both parties on several matters.
The Speaker of the House of Representatives Kevin McCarthy met with reporters after his discussion with the President. McCarthy described the meeting as a very ‘productive discussion.’
He also added that even though both artists have not yet arrived at an acceptable solution for the issue, the meeting was by far the best one compared to any other meetings that the parties had over the topic.
McCarthy also stated that as there had been no final decision taken yet, the concerned staff members will be meeting regularly in the coming days, so as to work out a solution for the problem.
He also stated that he expected to talk with President Joe Biden almost every day until a final decision is made on the matter. While giving his statement McCarthy also took time to stress the fact that no official decision on the topic has been made and that the discussions were in progress.
The day of the meeting interestingly coincided with another warning from the Treasury secretary which suggested that it could be just days until the U.S. possibly cannot pay all of its expenses.
The warning regarding the potential danger was given by Janet Yellen, the Treasury Secretary in a new letter that was released on Monday.
Looking into the letter in detail, it clearly stated that the Treasury will not be able to handle or fulfill all the needs of the government if Congress does not act on time.
The letter also mentions two possible immediate solutions to raise or suspend the debt limit and also emphasizes that it should be done as early as possible, most preferably as early as June 1.
Markets were keen on the outcomes of the meeting held on Monday and we’re watching the meeting very closely. According to Mark Zandi who is the Chief Economist at Moody’s Analytics, there is a lot on the line with each passing day.
One of the new analysts from JPMorgan also made a statement regarding the situation and stated that stocks could have a sharp downward reaction if, by any chance, the talks in the coming day do not go as expected.
Looking into the discussion that took place on Monday between President Joe Biden and Speaker Kevin McCarthy, one major issue that stuck out was the issue regarding raising revenues.
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Biden and their team have constantly pithed the move to close some of the tax loopholes like the provisions that surround the fossil fuel and cryptocurrency sector but the idea is strongly opposed by the Republicans.
In one of his statements made on Monday, Biden stated that Revenue was important. The House of Representatives speaker responded to the statement and said that Americans were already overtaxed.
Alon with the discussions and concerns regarding raising the revenues, both sides are also discussing and trying to negotiate over the issue of spending levels.
Following the meeting between Biden and McCarthy, different potential problems are also being discussed in different circles and one of the major concerns now is the fact that even if a deal between both parties is announced soon, there are a few different steps that need to be completed in order for the government to avert the default.
According to President Joe Biden, that most primary task is to get something that can be sold to both sides.
But the approval from both Chambers of Congress is not an easy task. The approval will be even harder as a result of the growing discontent from both left and right.
Even if the meetings between Bidn and McCarthy come to a deal in the coming days, it will take several other days for the legislation to move through Congress.
Kevin McCarthy also reminded the fact that the deal must be made this week itself in order for it to pass Congress and also be signed by Joe Biden in time in an effort to avoid a possible default.
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