India's First International News Journal

23.1 C
Tuesday, May 30, 2023
Government and PoliticsThe United States will not default on public debt

The United States will not default on public debt


The director of the International Monetary Fund (IMF), Kristalina Georgieva, said on Wednesday that she was convinced that the United States would not default on public debt.

Recall that the last round of negotiations on the national debt ceiling between representatives of President Joe Biden and Republicans in Congress ended in vain on Tuesday.

“History tells us that the debate in the United States over a (possible) default will continue…but it will all be decided at the last minute, and I’m sure it won’t be the last time,” he said. said Georgieva, speaking at the Qatar Economic Forum in Doha.

Republicans are pushing for drastic spending cuts, while Democrats are proposing to keep spending stagnant, instead using new taxes to reduce federal government debt.

The months-long standoff negatively impacted US equities and drove up the cost of borrowing. The Ministry of Finance has warned that the money may not be enough to cover all expenses as early as June 1.

White House press secretary Karine Jean-Pierre called the debt talks “incredibly difficult.”

“Both parties must understand that they will not get everything they want,” Jean-Pierre told a press briefing.

A source familiar with the White House talks said Biden offered a compromise that included a spending freeze, the return of large unspent COVID funds and a two-year spending cap in line with previous bipartisan budget agreements.

According to the source, McCarthy “says he wants to negotiate, but today he said the only concession he’s willing to make is to prevent a default, because that’s his primary constitutional responsibility.”

Read the Ukraine War News Latest Today on The Eastern Herald.

Copyright © 2023 The Eastern Herald.

News Room
News Room
The Eastern Herald’s Editorial Board validates, writes, and publishes the stories under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on


Please enter your comment!
Please enter your name here


Millionaire Aisle Raffle Draw


Latest News