All articles tagged with #potential default
With the US potentially defaulting on its debt in just nine days, the stock markets are unlikely to react positively to the debt ceiling deal. The possibility of a financial crisis looms as the government struggles with spending and the potential consequences of defaulting on its debt.
The White House and congressional Republicans are expected to resume negotiations on a deal to raise the US government's $31.4tn debt ceiling, with as little as a week remaining until a potential economically catastrophic default. Time is running short, with the Treasury Department saying the US could run out of money to pay its bills as soon as June 1 if the debt ceiling is not raised. A US default could upend global financial markets and push the country into recession.
Negotiations to raise the US debt ceiling and avoid a potential default resumed after a brief impasse. Republicans are demanding hefty spending cuts on Democratic priorities, while Democrats are calling for a clean raise without preconditions. Treasury Secretary Janet Yellen has warned that without action, the US government will be unable to pay its debts on or around 1 June. Some Democrats are urging President Biden to invoke the 14th amendment and raise the ceiling on his own, but the White House still believes a reasonable bipartisan solution is possible.