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Debt Ceiling Talks: Biden & McCarthy Race Against Time

• Speaker Kevin McCarthy says President Joe Biden is not negotiating the US debt limit
• Many analysts predict a financial crisis if an agreement is not reached
• President Biden says he and McCarthy have appointed senior members of their teams to hammer out a deal

US Debt Ceiling Negotiations

House of Representatives Speaker Kevin McCarthy has criticized President Joe Biden for not negotiating the US debt limit. If an agreement is not reached, many analysts including Bloomberg commodity strategist Mike McGlone predict a financial crisis, and that risk assets like Bitcoin (BTC) would fare the worst.

McCarthy’s Criticisms

McCarthy said that he repeatedly criticized the president for not negotiating, and now a dangerously tight deadline to reach an agreement awaits. He said, “I’ve been on your show many times telling you we should be nervous because the president’s not negotiating. The Republicans passed our bill in April, long before [Treasury] Secretary [Janet] Yellen told us the deadline was June 1. I never wanted to be working towards a deadline.”

Framework For Negotiations

McCarthy said that he and the president appear to have finally worked out a framework to have productive negotiations. Ultimately, he said he does not believe a debt default will happen in the end.

Biden Addresses Nation

President Biden addressed the nation this morning, saying that he believes an agreement to avoid a default is imminent. He says that he and McCarthy have appointed senior members of their teams to hammer out a deal. He stated: “Yesterday, we all agreed that both speaker McCarthy and I would designate senior members, that we would negotiate.”

Conclusion

The US debt ceiling negotiations between President Joe Biden and Speaker Kevin McCarthy are ongoing as they appoint senior members of their teams to find a solution before June 1st when Treasury Secretary Janet Yellen warned of a looming financial crisis if no agreement is reached by then. While there are still risks of defaulting on payments if no arrangement can be found, both parties are optimistic about reaching an accord soon enough to avert disaster