As negotiations between the White House and Republican congressional leaders on
raising the federal government's debt ceiling hit a roadblock, fears of a
potential default loom. With less than two
weeks before June 1, when the Treasury Department warned of a possible inability
to meet debt obligations, the acrimonious talks have yielded no progress.
President Joe Biden, attending a meeting of G7 leaders in Japan, expressed
optimism that a default could still be avoided, despite acknowledging "serious
differences" with Republicans. Republicans are insisting on spending cuts as a
condition for raising the borrowing limit, while Democrats seek to maintain
current spending levels.
The timing of the next meeting remains uncertain, adding further uncertainty
to the situation. Stock markets closed on a weak note as news of the impasse
emerged, highlighting the potential impact of a default on the economy. |