Joe Biden will meet Tuesday, May 16, the leaders of the parliamentary opposition, including the boss of the House of Representatives Kevin McCarthy, to try to avoid a US default, which could occur as early as June 1, confirmed Monday the Department to the Treasury.
The US president, at the end of a family lunch in Philadelphia (northeast), answered in the affirmative to journalists who questioned him about the holding of this meeting.
Joe Biden, Kevin McCarthy and three other congressional leaders had originally planned to meet last Friday, after a first round of talks without much progress on May 9. But the meeting was postponed, and the teams of the various protagonists have been negotiating ever since.
The world's largest economy could find itself unable to meet its financial commitments as of June 1. The Treasury Department on Monday confirmed the estimate published in early May, and updated with "additional information now available".
In a letter sent to Kevin McCarthy, Treasury Secretary Janet Yellen said that "the Treasury will likely no longer be able to meet all of the government's obligations if Congress has not acted to raise or suspend the debt limit in early June, and potentially as early as June 1." She said the Treasury Department will release an update to that date next week.
Joe Biden "optimistic"
In the letter, Biden's economy and finance minister also urged Congress to quickly seal a deal, saying that "waiting until the last minute ... can cause serious damage to businesses and consumer confidence, increase short-term borrowing costs for taxpayers and hurt the credit rating of the United States."
Joe Biden said Sunday he was "optimistic". But Kevin McCarthy spoke Monday of "positions (that) are still very far apart. It doesn't seem to me that (the White House and the Democrats) want a deal."
The White House also said that for now the US president still plans to fly Wednesday for a diplomatic tour of Asia and the Pacific.
The U.S. Congress must vote quickly to raise the maximum public debt ceiling, failing which the U.S. may be unable to meet its financial obligations and maturities. Republicans refuse to do so as long as Joe Biden does not agree to make major budget cuts.
Former President Donald Trump urged Republicans, over whom he retains immense influence, to "cause a default" if the Democrats do not accept "massive cuts" in spending.
The Congressional Budget Office (CBO) also mentioned the beginning of June for a potential default.
With AFP
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