US Default: America is on the verge of bankruptcy. US Finance Minister Janet Yellen had spoken of default by June 1. However, now this default deadline has been extended from June 1 to June 5, ahead of the earlier fixed date of June 1. Meanwhile, US President Joe Biden is also in talks with Republican speaker Kevin McCarthy to avoid default.
US Democratic Party President Joe Biden and Republican Speaker of the House Kevin McCarthy are trying to extend the loan time of 31.4 trillion and prevent a potentially catastrophic default.
Negative impact on America’s credit rating
Republican Speaker Kevin McCarthy said through a letter that banning or increasing the loan time could cause serious damage to businesses and consumers. This may increase the borrowing cost for taxpayers. America’s credit rating can be negatively affected.
US Treasury Secretary Janet Yellen said that if the US government fails to act by the new date, American families will suffer severe hardship, our global leadership position will be damaged and our ability to protect our national security interests will be affected. Questions will arise.
In addition, Joe Biden and Republican House Speaker Kevin McCarthy were hesitating over a two-year budget cut deal that would also raise the debt ceiling in 2025, ahead of the next presidential election.
This is a time of crisis – Kevin McCarthy
Republican Speaker Kevin McCarthy acknowledged on Friday (May 26) that this is a time of crisis. We are facing crunch of time. I am in talks with Joe Biden to extend the loan time. I am expecting a cut in the aggressive spending plans of the President of the country.
Kevin McCarthy said, I want to be able to solve this problem. Congress used to vote every year to extend the loan time, but recently it has become a form of political expediency where other measures are implemented on the bill.
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