Democratic Party supporters oppose the Republican Party and blame these politicians for the impasse in negotiations to raise the current public debt ceiling – Photo: REUTERS
President Joe Biden has said he will not rule out invoking the 14th Amendment to raise the US public debt ceiling. However, at a press conference in the early hours of May 24 (Vietnam time), White House Press Secretary Karine Jean-Pierre denied this possibility.
“Invoking the 14th Amendment will not solve the problem we face,” said Jean-Pierre.
President Biden met with leaders from both houses of the US House of Representatives on the morning of May 24 to negotiate raising the public debt ceiling. All eyes are on the Republican Party, specifically on the Speaker of the United States House of Representatives, Kevin McCarthy.
Speaking after the meeting, McCarthy continued to criticize the White House and Democrats for doing nothing to prevent the US from defaulting on its debt. At this rate, there will be no deal before June 1, he said.
The US Treasury Department estimates that June 1 is the date the US will officially default on its debt if the public debt ceiling is not raised. However, according to independent experts, “day X” may fall a week or two later.
That will give Biden and the group of Republicans more time to negotiate.
During a press conference on May 24, Jean-Pierre ruled out a short-term extension of the debt ceiling to give Biden and the McCarthy team more time to negotiate.
She confirmed to reporters that such a solution is currently not an option.
The White House representative also confirmed that there were advances in each negotiation.
“But both sides need to understand that they won’t get everything they want,” Jean-Pierre urged for concessions.
After four rounds of negotiations between Biden and McCarthy, the contents of a possible agreement on raising the public debt ceiling gradually emerged.
These include raising the debt limit in conjunction with federal spending restrictions, reforms to streamline the energy project approval process, and recovering up to $70 billion in unused pandemic relief.
Republicans remain firm on their goal of reducing spending to 2022 levels and see that as a “red line”. However, the White House and Democrats vehemently rejected the request.
The Biden administration also wants to cut the deficit in part by raising taxes on businesses and the rich, not just through spending cuts. Again, this is something the Republican Party steadfastly refuses to compromise.
