Debt Ceiling Deadline Looms: Biden Failing to Negotiets

• House of Representatives Speaker, Kevin McCarthy, has warned that President Joe Biden is not adequately negotiating to raise the US debt limit and default looms.
• Many analysts predict a financial crisis if an agreement isn’t reached and risk assets like Bitcoin (BTC) would be hit the hardest.
• President Biden has acknowledged the tight deadline and appointed senior members of his team to work with McCarthy in order to reach a deal.

Biden Failing To Negotiate US Debt Ceiling

House of Representatives Speaker Kevin McCarthy has flagged concerns over President Joe Biden’s failure to negotiate on raising the US debt ceiling, as default looms. In an interview with CNBC, McCarthy criticized the president for not negotiating sooner and expressed his worries about the tight deadline now in place.

Analysts Predict Financial Crisis

Bloomberg commodity strategist Mike McGlone predicts that should a deal not be reached, there could be a financial crisis, with risk assets such as Bitcoin (BTC) likely hit hardest by any downturn.

Biden Acknowledges Deadline

President Biden addressed the nation this morning saying he believes an agreement is imminent. He said both himself and McCarthy have appointed senior members of their teams to hammer out a deal. He also highlighted his administration’s progress in reducing the deficit by $1.7 trillion in its first two years and proposing a budget that will reduce another $3 trillion over the next decade via increased revenue from wealthy individuals and large corporations, as well as cutting subsidies for Big Oil and Big Pharma companies.

McCarthy Confident Default Won’t Happen

McCarthy said he was confident that at least now there was “a structure” in place to come to some kind of conclusion before June 1st when Treasury Secretary Yellen said “the deadline was”. He added that ultimately he did not believe there would be a debt default, saying “I think at the end of the day we do not have a debt default…we finally got the president to agree to negotiate…let’s get the job done”

We Should Be Nervous

Despite progress being made through negotiations between both parties, McCarthy warned people still needed to be nervous about what could happen if no agreement is reached adding “I never wanted to be working towards a deadline”