World Bank President Malpas doubts the possibility of a US default
[ad_1]
World Bank President David Malpas does not expect a US default any time soon. He stated this on the air of the American television channel CNN, writes TASS.
On May 7, US Treasury Secretary Janet Yellen warned that the United States could face a default in early June if the country does not pass a bill to raise the national debt ceiling.
The House of Representatives (the lower house of the US Parliament) at the end of April approved a bill to raise the public debt limit, but with a significant tightening of fiscal policy, including a reduction in government spending.
In the House of Representatives, the Republicans have a majority, in order for the law to pass further, it must be approved in the Senate, which in turn is dominated by Democrats.
The bill, announced by Republican Speaker of the House Kevin McCarthy, would raise the ceiling by $1.5 trillion but cut spending by $4.5 trillion. Democrats and the White House did not support the proposal.
On May 10, US President Joe Biden said that the crisis in the country was formed because of the Republicans, as the United States can pay its public debt. At the same time, the president agreed with Senate Minority Leader Mitch McConnell that the US would not default. McConnell also urged the US president to make a deal with McCarthy.
23 May McCarthy named Biden responsible for a possible default in the country. The speaker’s website notes that he tried to start discussions on increasing the debt limit, after which “for the next 104 days, President Biden ignored Speaker McCarthy’s reasonable requests for negotiations as the debt crisis approached.”
[ad_2]
Source link
