The negotiations to hike the United States debt ceiling have been ongoing in the Congress as the Republicans are pushing for the proposed bill to become law. Meanwhile the Democrats contradicts the proposed bill but fall short to hold ground in the Senate as they are in minority in the Upper House of the United States Congress.
Recent developments in US debt ceiling negotiations
In recent terms of talks, the United States President Joe Biden contacted in-person with the Republican House Speaker Kevin McCarthy on Monday to discuss further about the ongoing negotiations related to increasing the country’s debt ceiling. The debt ceiling refers to the limitation of the amount that the US government can borrow from the US treasury to pay its accounts or debts.
The crisis is bulging and needs quick action as the funds are likely to vaporize by the starting of June. The situation, if the US fails to circumvent the very likely debt default, would be “cataclysmic” as per analysts and experts.
A recent effort by the Democrat President to reach negotiations with the Republican Mc Carthy has shown no concrete ground to be reached on the matter of hiking the country’s debt ceiling. But the Republican Mc Carthy, after the meeting claimed that the Monday in-person meeting with the US President has been the most “productive” one so far.
McCarthy after the meeting with Biden, gave a confident expression regarding the talk on the concerned subject matter. “I think the tone tonight was better than anytime we have had discussions”, Mc Carthy told the reporters at a press conference.
“I felt the meeting was productive.”, he further added.
The statements by McCarthy were further reaffirmed by North Carolina Representative Patrick McHenry. He told the reporters that the meetings before the Monday meeting had been tough and exclaimed the last meeting had been productive. They are looking forward to common grounds and some more details would enable them eventually to pass the bill in Congress, he further added.
However, McCarthy cautioned that there has not been any strong common ground yet but the negotiating teams are confident that they would avert the debt default before June 1 (the deadline).
What is taking so long for the bill to get passed by the Senate?
The bill to increase the current $31.4 trillion debt ceiling has been passed by the Republicans in the Senate but the block has been built by the Democrats. But the bill passed by the Republicans includes certain spending-cuts by the ruling government which have been the point of contention by the US President Biden and the Democrats.
The Biden administration has been proposing and contesting for a “clean” debt ceiling increase without any conditions attached which has been outrightly rejected by the Senate House Speaker McCarthy.
The US Treasury Secretary, Janet Yellen has been expressing her concern over the possible debt default by the country and its catastrophic implications and urging the Congress to act as soon as possible to avert the possible destruction.
She also further commented about the hardships that the default can cause to the country’s citizens and families and possible questions that will be raised against the country’s ability to defend our national security interests.
The negotiations before the Monday meeting between the President and McCarthy had not been of much significance. The talk was halted before Friday last week as Mc Carthy left the meeting abruptly.
McCarthy expressed the abrupt pause due to frustration from the White house and its lack of negotiating intent.
Owing to ongoing turbulence in the country related to the country’s debt crisis and criticism of the President’s absence from the negotiations, Joe Biden had to cancel its scheduled visits to Australia and Papua New Guinea.