Jakarta, CNBC Indonesia – Debt ceiling talks between the White House and the opposition Republican Party reached an impasse on Saturday (21/5/2023) evening local time. Time is even narrower for the United States (US) to avoid default in June.
The Republican offer made Friday night was “a major step backwards and contains a series of extreme partisan demands that could never get past both Houses of Congress,” White House spokeswoman Karine Jean-Pierre said in a statement. AFP.
“Only Republican leadership beholden to its MAGA wing – not the President or the Democratic leadership – is threatening to default our country for the first time in our history unless extreme partisan demands are met,” he said, referring to the far-right Republican Party.
The White House was determined not to let Republicans blame Democrats for the situation in the public eye, even sending a memo to the newsroom detailing the proposal.
Meanwhile, US House Speaker Kevin McCarthy said the White House was “moving backwards” in talks.
“Unfortunately, the socialist wing of the Democratic Party appears to be in control, especially with President Biden overseas,” he wrote, referring to Biden’s trip to Japan for the G7 summit.
With the Treasury Department warning that the US government could run out of money as early as June 1, triggering a massive economic disruption in the world’s largest economy and likely around the world, the political battle in Washington has been simmering with no clear sign of resolution.
Republicans, who control the House of Representatives, are demanding sharp budget cuts as a “price” for allowing the government’s extension of borrowing powers by raising the debt ceiling from the current $31.4 billion.
The White House is seeking to scale back the demands, arguing that the usually uncontroversial increase in the annual debt ceiling is being weaponized for political gain.
(luc/luc)
2023-05-21 05:00:00
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