White House reports ‘steady progress’ in talks to avoid default

Is the threat to the accounts of the United States about to recede? US President Joe Biden has been briefed on “steady progress” in negotiations in Washington to avoid a default by the country, said Friday, May 19 a White House official on the sidelines of the G7 summit in Japan in which the American president participates.

“The president has asked his team to continue to push for a bipartisan agreement” And “remains confident in the ability of Congress to take the necessary measures to avoid a default” on the American debt, according to this person in charge. The US government expects the federal debt ceiling to be reached as soon as June 1, if Congress does not vote, as it has to, to raise it.

Republicans call for lower spending

It raises fears that the world’s largest economy will default on debt repayments, triggering a global financial storm. However, the hope of avoiding this scenario is currently in order. “I see a breakthrough through which we could reach an agreement”said Thursday the Speaker of the United States House of Representatives, Republican Kevin McCarthy.

The Republicans are trying to obtain substantial cuts in public spending in exchange for their green light in Congress to raise the debt ceiling. The White House has accused Republicans of holding the US economy “Held hostage”. Joe Biden has named two special negotiators on the file.