President Joe Biden and Republican leaders have expressed optimism that a deal to raise the U.S. debt ceiling is within reach, however the Speaker of the House, Kevin McCarthy, told reporters the two sides are still far apart. Without a deal, the U.S. could enter a calamitous default on its $31.4 trillion debt as soon as June 1st. A failure by the U.S. government to meet its debt obligations could trigger global financial chaos.
Reaching the debt ceiling would mean the U.S. government is unable to borrow any more money, and would no longer be able to pay the salaries of federal and military employees. Occasionally, the U.S. Congress votes to raise or suspend the ceiling so it can borrow more. A default, which would be the first in U.S. history, could shatter trust in America’s political ability to pay its bills. Experts have warned it could also see the US spiral into recession and trigger a rise in unemployment.
Read more: https://www.bbc.com/news/world-us-canada-65615314
