Biden will meet with the speaker of the House of Representatives to ask that the debt limit be increased

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The US president will also speak with Kevin McCarthy about Republican lawmakers' plan to make cuts to health benefits a condition of raising the spending ceiling< /h2>

Biden will meet with the president House of Representatives to request that the debt limit be increased

Kevin McCarthy, Speaker of the US House of Representatives. (REUTERS)

US President Joe Biden will meet with House Republican Leader Kevin McCarthy to call for that opposition legislators vote to raise the debt limit and negotiate spending cuts.

“The president has said it many times, increasing the debt limit is not a negotiation, it is an obligation for this country and its leaders to avoid economic chaosWhite House spokeswoman Karine Jean-Pierre said in a statement.

The president will also speak with McCarthy , Speaker of the House of Representatives, on the plan of Republican lawmakers to make cuts to health benefits a condition for increasing the spending ceiling.

We are going to have a clear debate on two different visions of the country: one that cuts Social Security and another that protects it”, stated the spokeswoman.

The former president < b>Donald Trump on Thursday urged the Republicans in the Lower House to not modify Social Security benefits or Medicare, the latter a program of Health coverage for those over 65.

The US reached its debt limit on Thursday, which currently stands at 31.38 trillion dollars.

Biden will meet with the speaker of the House of Representatives to ask that the debt limit be increased

“The president has said it many times, raising the debt limit is not a negotiation, it is an obligation for this country and its leaders to avoid economic chaos,” White House spokeswoman Karine Jean-Pierre said in a statement. a statement. (REUTERS)

The debt ceiling is the total amount of money the government is allowed to borrow to meet its existing legal obligations and pay Insurance benefits Social and Medicare, military salaries, interest on the national debt, tax refunds and other payments.

Every so often, the US comes close to defaulting on its debt nationalbecause, unlike other countries, the US Executive can only issue debt up to the limit established by Congress, which has the power to raise that ceiling as it sees fit.

Although the limit has been raised dozens of times in the past, this time there is concern after Republicans in the Lower House, controlled by the Conservatives, promised that they won't raise it unless Biden agrees to federal spending cuts, which the president has already said he won't.

The treasury secretary , Janet Yellen, wrote in a letter to congressional leaders Thursday that her department has already activated “extraordinary measures” to pay the bills, but stressed that the use of these special financial tools is extended until June 5.

This Friday, a spokesperson for the International Monetary FundHe assured that not raising the US debt ceiling would have serious repercussions for the country and the world economy, and urged the parties involved to work to resolve the impasse.

Biden will meet with the speaker of the House of Representatives to ask that the debt limit be increased

Treasury Secretary Janet Yellen wrote in a letter to congressional leaders on Thursday that her department has already activated “extraordinary measures” to pay the bills, but stressed that the use of those special financial tools extends until the next 5 of June. (BLOOMBERG)

“The world economy is facing another difficult year. There would be serious repercussions if the US debt ceiling were not raised, there would be serious repercussions, both for the United States and through spillover effects on the world economy,” the spokesperson said in response to a query from the news agency Reuters.

“We strongly encourage the various parties to build the necessary agreement to resolve this issue,” he added.

Yellen, Treasury Officer in Democratic President Joe Biden's government, had said last week that “failure to meet government obligations would cause irreparable damage to the US economy, livelihoods and stability.” financial world”.

A default would damage the credibility of the United States, something that should never happen, warned the chief executive of JPMorgan Chase, the main bank of the country.

“We should never question the solvency of the United States government,” Jamie Dimon said in an interview with the network CNBC. “That is sacrosanct. It should never happen.”

Biden will meet with the Speaker of the House of Representatives to ask that the debt limit be increased Debt Limit

A spokesman for the International Monetary Fund said not raising the US debt ceiling would have serious repercussions for the country and the world economy, and urged the parties involved to work to resolve the impasse . (REUTERS)

The Treasury will begin to reduce its cash balances and resort to accounting techniques and tools to allow the government to continue its functions, Berenberg's Mickey Levy said Capital Markets.

(With information from EFE AFP and Reuters)

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