US Debt Haunts Economy Despite President Biden Eyeing Deadline Extension
All Eyes on President Joe Biden as U.S Debt Default Looms
Summary:
President Joe Biden and top Republican Kevin McCarthy will resume discussions on the debt ceiling, as the possibility of a U.S. debt default looms. The Treasury Department is taking measures to prevent a historic default, including assessing upcoming payment flexibility with federal agencies. With less than two weeks remaining before the deadline, the White House is working to find ways. Read full article below.
President Joe Biden and top Republican Kevin McCarthy are engaged in ongoing discussions concerning the US debt ceiling. Recognizing the pressing issue of the US debt and the growing possibility of a default.
As the Treasury Department takes decisive steps to prevent an unprecedented default. Including evaluating the flexibility of upcoming payments with federal agencies, the urgency to address the situation intensifies.
With the deadline approaching in less than two weeks. The White House is actively exploring options to postpone it. Thus, pushing President Biden and House Speaker Kevin McCarthy to negotiate an increase in the debt ceiling and address the mounting US debt.
US Debt Haunting Economy
The potential consequences of inaction are significant. As failure to raise borrowing, enhance tax collection, and decrease expenditures could result in the first missed payment in early June, a historic event in modern US history. In response, the Treasury has proactively reached out to various government agencies. Seeking to postpone upcoming payment obligations related to the US debt.
It is important to note, however, that the Treasury has not yet formally requested extensions for payment deadlines from these agencies. A recent memo from senior officials at the Treasury Department urges federal agencies to improve their reporting processes. This is regarding spending, indicating the need for greater transparency and efficiency in managing the US debt.
If payments are not received by the Treasury until June 15, a crucial date when a substantial number of quarterly tax payments are anticipated. The default deadline may extend into July. Such an extension could present an opportunity to introduce novel accounting techniques aimed at reducing the likelihood of a default in the near future.
Moreover, the potential ramifications of a US debt default are far-reaching. With significant volatility expected in both the stock market and the cryptocurrency industry. This underscores the criticality of addressing the issue promptly and effectively. Thus, emphasizing the importance of finding a resolution to the US debt crisis.
