Pictured: US President Joe Biden makes remarks about gasoline prices and oil company profits in the Roosevelt Room of the White House in Washington, US, October 31, 2022. (REUTERS/LEAH MILLIS)
Jakarta, CNBC Indonesia – Talks about increasing the US federal government debt ceiling by US$31.4 trillion entered a new phase Wednesday (10/5/2023), after the first negotiating meeting of Democratic President Joe Biden and Republican House Speaker Kevin McCarthy in Congress took place for the first time the first time in three months.
Meanwhile, the US is now on the brink of default, which Finance Minister Janet Yellen has warned could occur as soon as June 1.
Biden signaled his openness to Republican requests to recall some unspent money for Covid relief, which totaled less than $80 billion.
McCarthy told reporters that Biden had also shown a willingness to work toward speeding up permitting energy projects, a goal not being met by 2022. The White House had previously endorsed the idea.
“Default (defaulting) is not an option,” Biden told reporters after Tuesday’s meeting, reported Reuters. “I notified congressional leaders that I was prepared to begin separate discussions about my budget.”
Biden and the opposition Republican Party have been locked in a stalemate for months over the debt ceiling, with Democrats calling for unconditional “net” increases to pay the spending debt and tax cuts approved by Congress.
House and Senate Republicans, meanwhile, said they would not pass additional loans without an agreement to cut spending.
McCarthy estimates that the two sides have just two weeks to reach an agreement that Congress could then pass.
“I hope he’s willing to negotiate over the next two weeks so we can sort this out,” McCarthy said.
(luc/luc)
2023-05-10 13:50:00
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