Calay News
US President Joe Biden accused Republicans of holding the US economy “hostage” by conditioning the increase in the debt ceiling on a cut in public spending. Biden told congressional leaders that they must do what every other Congress has done and pass the debt limit increase to avoid default.
House Republicans, for their part, have insisted that Biden accept major budget cuts before voting to raise America’s borrowing limit, which is essential for the government to be able to borrow more money. The Biden administration says the funds will run out on June 1 if there is no positive vote in Congress.
Biden affirmed that he is willing to discuss budget cuts as long as the negotiation is not linked to the debt limit. Although the United States reached its debt limit of $31.4 trillion in January, the Treasury took extraordinary measures that allowed it to continue financing government activities. If the debt ceiling is not raised or suspended by Congress, the government risks defaulting on its payment obligations, which would have profound implications for the US and global economies.
