Summary of Article
- House of Representatives Speaker Kevin McCarthy says President Joe Biden is not negotiating the US debt limit and it should make people nervous.
- Many analysts predict a financial crisis if a deal is not reached, and that risk assets like Bitcoin would fare the worst.
- President Biden addressed the nation this morning, saying that he believes an agreement to avoid a default is imminent.
U.S. Debt Ceiling Negotiations
House of Representatives Speaker Kevin McCarthy has criticized President Joe Biden for his lack of negotiation regarding the raising of the U.S. debt limit. With a dangerously tight deadline approaching, Bloomberg commodity strategist Mike McGlone predicts a financial crisis if an agreement isn’t reached and that risk assets like Bitcoin (BTC) would be most affected by this outcome. Despite McCarthy’s repeated criticism, he expressed his confidence that there would be no debt default in the end.
McCarthy expressed his concerns on CNBC saying, “I’ve been on your show many times telling you we should be nervous because the president’s not negotiating.” He also noted how Republicans passed their bill in April before Treasury Secretary Janet Yellen told them the June 1st deadline. He continued to emphasize how he never wanted to be working towards a deadline and hoped for productive negotiations with President Biden instead.
President Biden’s Response
In response to McCarthy’s criticism, President Biden addressed the nation this morning saying an agreement to avoid default was imminent. He stated that both himself and McCarthy had appointed senior members from their teams to come together in order to hammer out a deal which includes more revenue by asking wealthy corporations to pay their fair share as well as cutting subsidies currently offered by Big Oil and Big Pharma companies.