Rating agency Fitch is considering downgrading the US credit rating. It is clarified that the reason for this was the crisis around the ceiling of the national debt. Against this backdrop, the US Treasury again called on companies 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 may come as early 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 expenditures. We are talking about several trillion 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, both Joe Biden and Speaker of the House of Representatives Kevin McCarthy say they will not allow a default in the United States.
There will be no default, we will solve this problem
- McCarthy said after another round of negotiations with the President of the country.
Most financial analysts also do not believe that the US can default. The consequences may be too severe not only for economics United States, but also for the rest of the world.
However, neither side wants to be the first to make concessions. Republicans reasonably believe that a possible default will shake the already flimsy position of Joe Biden, and therefore continue to play for time, insisting that the presidential administration fulfill its demands.