The White House is concerned about the threat of a default due to the unwillingness of the country's president to speak with the speaker of the House about raising the national debt ceiling.

The administration of US President Joe Biden is seriously concerned with the default threat due to the lack of the communication between the American leader and Speaker of the House Kevin McCarthy on raising the national debt ceiling.

"Within the administration, some are concerned more, others less. High-ranking representatives, focused on economic issues, privately expressed greater concern about the probable default,” Politico writes.

It is specified that between Biden and McCarthy there is no official and informal communication on this topic. The Politico notes that the parties conduct all discussions only during speeches and statements in the media.

Last Wednesday, April 19, the Speaker of the House introduced a bill to raise the US national debt ceiling by $1.5 trln and cut federal spending.

It is suggested to limit the growth of government spending at a rate not exceeding 1% annually. If additional spending is needed, the White House will have to turn to Congress for approval.

According to McCarthy himself, he intends to pass the bill through the House of Representatives, and then "go to the Democratic-controlled Senate."

The main intrigue is whether McCarthy will be able to get a majority in the House. At the same time, he certainly cannot count on success in the Senate.

According to Politico, the White House should not allow Congress to make the issue of the national debt ceiling a subject of discussion.

At present, the US administration is still demanding from Congress an unconditional expansion of borrowing limits. Otherwise, there are fears that the US will not be able to service its debt obligations as early as this summer.

The American leader refuses to negotiate with McCarthy on the national debt ceiling and demands the increase to be automatic, as it was before.

Source - vesnikkavkaza.net

#ECONOMY

#POLITICS

#SECURITY

#USA

#DIPLOMACY

#DEFAULT

25.04.2023 10:25