Debt Limit Deadline Looms: Biden Negotiations Fail to Allay Crisis Fears

• Speaker Kevin McCarthy says President Joe Biden is failing to negotiate the raising of the US debt limit.
• Many analysts predict a financial crisis if a deal is not reached and that risk assets like Bitcoin (BTC) would fare the worst.
• President Biden addressed the nation saying that he believes an agreement to avoid a default is imminent.

Debt Limit Negotiations

House of Representatives Speaker Kevin McCarthy says President Joe Biden is failing to adequately negotiate the raising of the US debt limit, and it should make people nervous. In a new interview with CNBC, McCarthy says that he repeatedly criticized the president for not negotiating, and now a dangerously tight deadline to reach an agreement awaits.

Risk Assets

Many analysts, including Bloomberg commodity strategist Mike McGlone, predict a financial crisis if a deal is not reached, and that risk assets like Bitcoin (BTC) would fare the worst. Says McCarthy, “I’ve been on your show many times telling you we should be nervous because the president’s not negotiating.”

Deadline Looming

The Republicans passed their bill in April long before Treasury Secretary Janet Yellen told them that June 1 was the deadline. McCarthy said they have finally worked out a framework to have productive negotiations but does not believe a debt default will happen in the end.

President Biden’s Address

President Biden addressed the nation this morning saying that he believes an agreement to avoid a default is imminent. He said both speaker McCarthy and he would designate senior members to negotiate on their behalf.

Conclusion

Ultimately, McCarthy said he thinks at the end of day they will not have a debt default as they finally got President Biden to agree to negotiate which was difficult for him as president but it’s what old Joe Biden was good at according to him..