Biden insists that "there will be no default” on the debt in the US.

First modification: 05/26/2023 – 04:21

With the date for a possible unprecedented default approaching, President Joe Biden updated on debt ceiling negotiations from the White House, insisting that “there will be no default.”

White House negotiators and congressional leaders are continuing negotiations that were “progressing,” though he acknowledged that serious disagreements remained. Despite this, Biden assured that the disagreements revolve around the differences on what the budget will be like, not on whether or not the United States will default on its loans.

“The negotiations we’re having with Chairman McCarthy are about what the budget will look like, not default,” Biden said. “These are competing versions of the United States,” she added.

According to him, both parties have “agreed that there will be no default.”

“The only way forward is with a bipartisan agreement,” he added. “And I believe that we will come to an agreement that allows us to move forward and protects hard-working Americans in this country,” he told reporters.

For the past few months, the Biden administration has refused to negotiate with McCarthy on the debt limit, arguing that the full faith and credit of the country should not be used for partisan priorities.

Republicans are demanding spending cuts in exchange for their vote to raise the nation’s debt limit. The White House is offering to freeze next year’s spending at current levels and restrict 2025 spending, which is not enough for McCarthy.

Time is running out to draft a bill and get both houses of Congress to pass the legislation in time to avoid a possible default on June 1, which experts say would have serious consequences for the US and world economies.

with PA