• House of Representatives Speaker Kevin McCarthy has warned that President Joe Biden is not negotiating the US debt limit and default looms.
• Bloomberg commodity strategist Mike McGlone predicts a financial crisis if a deal is not reached, with Bitcoin (BTC) likely to bear the brunt.
• President Biden says he and McCarthy have appointed senior members of their teams to hammer out a deal.
McCarthy Criticizes Biden for Not Negotiating Debt Ceiling
House of Representatives Speaker Kevin McCarthy has criticized President Joe Biden for failing to negotiate an agreement on raising the US debt ceiling, warning that a default looms if no deal is reached in time. The deadline is June 1st, and many analysts predict a financial crisis with risk assets such as Bitcoin (BTC) likely to take the biggest hit.
McCarthy Urges Biden to Negotiate Before Deadline
In an interview with CNBC, McCarthy said he had repeatedly urged the president to begin negotiations as soon as possible before it was too late. He expressed confidence that a debt default can still be avoided before June 1st if both sides get into the room and work out an agreement.
Biden Proposes Budget to Reduce Deficit by $3 Trillion
President Biden addressed the nation this morning saying his administration had already reduced the deficit by $1.7 trillion in its first two years, and proposed a budget that would reduce it by another $3 trillion over the next decade through revenue collection from wealthy individuals and large corporations in addition to cutting subsidies for Big Oil and Big Pharma.
Biden & McCarthy Appoint Teams To Negotiate Deal
The president also announced that he and Speaker McCarthy have each appointed senior members of their teams to negotiate a deal before June 1st in order to avoid a debt default.
McCarthy Has Confidence A Deal Will Be Reached In Time
McCarthy said he believes there will ultimately be an agreement in place before June 1st, although he emphasized how tight the timeline is given how long it took for negotiations between himself and President Biden to even begin.