The rating agency Fitch is considering downgrading the US credit rating. It is stated that the reason for this was the crisis around the national debt ceiling. In this context, the US Treasury has again called on businesses and members of Congress on both sides to reach agreements that would end the crisis.
Despite the fact that the default in the United States could occur as soon as June 1, the Joe Biden administration and the Republican-controlled House of Representatives are still far from reaching agreements. The opposition insists on serious cuts in budget spending. We are talking about several trillions of dollars.
The corresponding bill, prepared by the Republicans, has already been approved by the House of Representatives. However, this document has no chance of survival in the Senate, the majority of which belongs to the Democrats.
At the same time, Joe Biden and House of Representatives Speaker Kevin McCarthy said they would not allow a default in the United States.
There will be no fault, we will solve this problem
- McCarthy said after another round of negotiations with the country’s president.
Most financial analysts also do not believe that the United States can default. The consequences could be too severe not only for the economy of the United States, but for the rest of the world.
However, neither side wants to be the first to make concessions. Republicans rightly believe that a potential default will shake Joe Biden’s already fragile position, and so continue to play for time, insisting that the presidential administration fulfill its demands.
Photos used: fitchratings.com
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