The Republican Speaker of the House of Representatives, Kevin McCarthy, said last night (5/25) that no agreement has been reached with the White House to increase the limit. debt of the federal state of USA.
Negotiators on both sides will continue to work to reach an agreement, he added, as the June 1 deadline approaches.after which Treasury Secretary Janet Yellen has warned that unless the borrowing limit is raised or suspended by Congress, the country will be forced into default.
“It’s hard. But we are working and we will continue to work until we achieve it”Mr. McCarthy told reporters.
Time is now running out to avoid the risk of the world’s largest economy defaulting, an unprecedented scenario synonymous with recession. turmoil in the US markets and the spread of the crisis in the global economy, economists point out.
With the tone having changed compared to the previous period, a government official claimed to Reuters that the agreement is close. This, he emphasized while maintaining his anonymity, would raise the federal borrowing limit for two years while capping public spending on most spending categories beyond the military and veterans over the same period.
Even the White House is considering making the concession to reduce funding to the Internal Revenue Service (IRS) in order to tighten checks on higher-income citizens under the deal, according to the same source.
The rating agency Fitch downgrades to negative the outlook of the debt of two banks
Meanwhile, rating agency Fitch Ratings has downgraded the credit outlook of mortgage and real estate giants Fannie Mae and Freddie Mac.
The day before Wednesday, the same house downgraded to negative the outlook of the credit of the American government itself – it is in the AAA level, the highest -, due to the absence of an agreement between President Joe Biden and the Republicans.
In a statement, Fitch Ratings explained that the downgrade of the banks’ outlook reflects the “uncertainty” over the issue of the public debt limit.
Source: News Beast
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