- Debt Ceiling Deadline Looming: House of Representatives Speaker Kevin McCarthy has criticized President Joe Biden for not negotiating the US debt ceiling and a default is looming.
- Crisis Feared: Many analysts, including Bloomberg commodity strategist Mike McGlone, fear a financial crisis if an agreement isn’t reached and that risk assets like Bitcoin (BTC) would suffer the most.
- Negotiations Underway: Speaker McCarthy and President Biden have worked out a framework to negotiate and Biden addressed the nation this morning saying that an agreement is imminent.
Debt Ceiling Deadline Looming
House of Representatives Speaker Kevin McCarthy has criticized President Joe Biden for not negotiating the US debt ceiling and a default is looming. Many analysts, including Bloomberg commodity strategist Mike McGlone, fear a financial crisis if an agreement isn’t reached and that risk assets like Bitcoin (BTC) would suffer the most.
McCarthy’s Criticism
McCarthy says that he repeatedly criticized the president for not negotiating, and now a dangerously tight deadline to reach an agreement awaits. Says McCarthy, “I’ve been on your show many times telling you we should be nervous because the president’s not negotiating. The Republicans passed our bill in April, long before [Treasury] Secretary [Janet] Yellen told us the deadline was June 1. I never wanted to be working towards a deadline.”
Framework Negotiated
McCarthy said that he and the president appear to have finally worked out a framework to have productive negotiations. Ultimately, he said he does not believe a debt default will happen in the end. “The only thing I’m confident about is now we have a structure to find a way to come to a conclusion. The timeline is very tight. But we’re going to make sure we’re in the room and get this done. I think at the end of the day, we do not have a debt default. I think we finally got the president to agree to negotiate.”