• President Joe Biden will meet with House Speaker Kevin McCarthy on May 9th to discuss the US Debt Ceiling Crisis.
• Treasury Secretary Janet Yellen has warned that the US could face certain default by June 1st if Congress does not increase or abolish the debt ceiling.
• The meeting, which will include majority and minority leaders of both branches of Congress, is an effort to prevent an extended economic crisis.
US Facing Default on Debt Ceiling
The United States is quickly approaching a potential default due to its current debt limit crisis. Treasury Secretary Janet Yellen has warned that without immediate action from Congress, the government could run out of money as soon as June 1st. As a result, President Joe Biden has called for an urgent meeting between him and the four top congressional leaders—including Speaker of the House Kevin McCarthy—to discuss a solution next week on May 9th.
Default on America Act
Last month, McCarthy was able to garner enough support from House Republicans to pass the ‘Default on America Act’, which would raise the government’s $31.4 trillion debt ceiling by an additional $1.5 trillion and impose a 14% cut on government spending. Although it passed with a narrow margin (217 votes for 215 against), Biden expressed strong disapproval of this measure as he believes it does not solve the underlying issues causing the crisis in the first place.
May 9 Meeting
The upcoming meeting between Biden and McCarthy at The White House will involve majority and minority leaders from both branches of Congress in order to reach a resolution before June 1st arrives and causes further damage to an already fragile economy. In addition to McCarthy, Democratic leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer, and Republican leader Mitch McConnell have also been invited for their input during this crucial discussion about how best to handle America’s debt ceiling crisis going forward.
Consequences of Default
If no action is taken by Congress at all before June 1st arrives then America could potentially be facing its first-ever default in history amidst warnings from Yellen that such a situation would cause catastrophic damage across multiple sectors of society including education, healthcare services and more.
Urgent Action Needed
With time rapidly running out until June 1st arrives, it is imperative that president Joe Biden and his fellow congressional leaders come together quickly in order to address this issue before it creates another major economic collapse like happened during 2008’s financial crash