The U.S. president Joe Biden and House Republican Speaker are set to resume talks on Debt Ceiling on Monday after both had a phone call on Sunday to discuss the issue
The United States president who was attending the G7 summit said in a press conference that he and McCarthy will resume talks on the U.S. debt ceiling on monday. The press briefing was conducted in Hiroshima, Japan on the final day of the G7 summit. The press conference came after president Joe Biden had a call with Kevin McCarthy, who is worried about the debt ceiling limit. During the president’s visit to Hiroshima, Japan, no progress had been reported by the negotiators so far.
The house speaker Kevin McCarthy said after the phone call, that the call was quite productive and with a few days left for default, they have to spend less than what they spent last year.
Biden’s Press Conference on Debt Ceiling
Joe Biden said that before leaving for G7, he had a talk with 4 congress leaders with whom he agreed that the only solution for the debt ceiling limit is a bipartisan bill. All 4 congressional leaders who have met with him agreed that debt default is not an option, biden remarked. The president assured the reporters that America has not defaulted on debt in the past and it never will. The president also showed disagreement to the harsh proposals made by the republicans earlier. He said that he is not going to give any break to the oil industry which made $ 200 billion in revenue last year.
Spending Cut Proposal
In the press conference, the president of the United States said that he had already made a proposal to make cuts of more than a trillion dollars and an additional deficit reduction of $ 3 trillion. He said that the deficit reduction will happen from spending cuts and increased revenues.
Apart from this, Joe Biden disagreed with the proposal cuts of the republicans. Biden said that he will not cut medicaid which will risk the healthcare of 21 million Americans. He also said that nor will he agree to a deal which cuts a hundred thousand jobs of school teachers and assistance related jobs. President Joe Biden also said that he will not risk the food assistance of nearly 1 million Americans by protecting wealthy tax shields.
Overall, he said that the bipartisan deal should be a partisan deal which the republicans have proposed.
Less than 10 days remain for Debt Ceiling Default
Very few days are left until the government of the United States defaults on its debt ceiling. Asian stock markets fell on Monday as the debt ceiling talks remained stalled for one to two days. Since the president Joe Biden had left to attend the G7 summit, the negotiators of Joe Biden and Kevin McCarthy haven’t made any fresh progress on debt ceiling talks. The president Joe Biden and Kevin McCarthy are set to meet again on Monday to resume the negotiations on the U.S. debt ceiling.
