short ‘pause’ in negotiations mounts pressure, Biden remains ‘confident’

Towards a default of payment from the United States at the beginning of June? The threat went up a notch on Friday May 19, after a “break” in the negotiations between the White House and the Republican opposition on the issue of the debt ceiling.

On Friday, House Republican Leader Kevin McCarthy left the negotiating table with Republican Representatives Garret Graves and Patrick McHenry. The discussions then resumed shortly after this “break”. Republicans are demanding drastic government budget cuts before giving the green light to raising the debt ceiling. A few moments earlier, the White House had admitted to stumbling on “real differences” with the Republican opposition, and conceded that the talks were “difficult”.

The Democratic administration and the Republican majority in the House of Representatives are engaged in a race against time to avoid default by the United States. This could happen from June 1, with potentially catastrophic consequences for the US and even global economy. Republicans are calling for federal spending to be cut back to 2022 levels. That would amount to cutting $130 billion in spending, a red line Democrats refuse to cross.

Joe Biden remains optimistic

US President Joe Biden, however, remains “confident”assured Saturday the spokesperson for the White House, Karine Jean-Pierre, acknowledging however that “real differences” persist between Democrats and Republicans on the subject. “I still think we will be able to avoid a default” payment, assured Joe Biden in front of journalists, on the sidelines of the G7 summit in Hiroshima (Japan).