• House of Representatives Speaker Kevin McCarthy has criticized President Joe Biden for not negotiating the US debt limit.
• Analysts predict a financial crisis if a deal is not reached, and risk assets like Bitcoin (BTC) would fare the worst.
• McCarthy and Biden have appointed senior members of their teams to hammer out a deal and Biden believes an agreement to avoid a default is imminent.
McCarthy Criticizes Biden Over Debt Limit Negotiations
House of Representatives Speaker Kevin McCarthy has publicly criticized President Joe Biden for not adequately negotiating raising the United States’ debt limit. According to many analysts, including Bloomberg commodity strategist Mike McGlone, failure to reach an agreement will lead to a potential financial crisis that could adversely affect risk assets like Bitcoin (BTC).
Biden & McCarthy Agree To Negotiate
McCarthy said he and President Joe Biden appear to have finally worked out a framework to have productive negotiations on the issue. The timeline is very tight, however McCarthy remains confident that no debt default will occur in the end. Specifically, they have agreed that both parties would appoint senior members of their teams in order to negotiate an acceptable outcome.
Biden Addresses Nation On Debt Limit Issue
President Joe Biden addressed the nation this morning regarding the debt limit issue. He applauded his administration’s progress on reducing deficits by $1.7 trillion over two years as well as proposed plans for additional revenue from wealthy people and large corporations while cutting subsidies Big Oil and Big Pharma receive from current laws.
What’s At Stake?
If no resolution can be reached between now and June 1st, many analysts fear it could lead to global economic turmoil with risk assets such as Bitcoin (BTC) taking some of the most serious hits from any resulting market crash or recession. It is therefore imperative that both sides come together quickly in order to ensure future financial stability for all involved parties.
The negotiations between President Joe Biden and House Representative Speaker Kevin McCarthy are ongoing with both sides agreeing that senior members of their teams should continue working towards reaching a resolution before June 1st when default looms otherwise. With so much at stake it is critical that these two leaders find common ground quickly in order to secure our nation’s financial future moving forward