Default Impending: Analysts Fear Financial Crisis
• House of Representatives Speaker Kevin McCarthy has warned that President Joe Biden is not negotiating the raising of the US debt limit, leading to a dangerous deadline.
• Analysts predict a financial crisis if no deal is reached, with risk assets like Bitcoin (BTC) potentially suffering the most.
• President Biden addressed the nation this morning and said he believes an agreement to avoid a default is imminent.
Speaker McCarthy Warns Of Default Risk
House of Representatives Speaker Kevin McCarthy has warned that President Joe Biden is not adequately negotiating the raising of the US debt limit, leading to a dangerously tight deadline and potential default looming. In an interview with CNBC, McCarthy expressed his criticism of President Biden for failing to negotiate before now, and warns people should be “nervous” about the situation.
Default Could Lead To Financial Crisis
Analysts are predicting a financial crisis if no agreement is reached on the debt ceiling by June 1st, with risk assets such as Bitcoin (BTC) potentially facing the worst consequences. Bloomberg commodity strategist Mike McGlone has warned that such a scenario could lead to serious economic turmoil.
Biden Believes Agreement Is Imminent
President Joe Biden addressed Americans this morning, expressing his belief that an agreement between himself and Speaker McCarthy was imminent. The president proposed his budget which would reduce another $3 trillion in deficit spending over the next decade by asking wealthy individuals and large corporations pay their fair share in taxes and cutting subsidies for Big Oil and Big Pharma companies. He also announced both he and Speaker McCarthy had appointed senior members of their teams to negotiate an agreement before June 1st.
McCarthy Urges Negotiation
McCarthy urged negotiation between himself and President Biden in order to reach an agreement before June 1st so as to avoid defaulting on US debt obligations. He said that he believes at least some progress has been made since he repeatedly criticized President Biden for not negotiating sooner, but says it will still be difficult for both sides to come together in time given how tight the timeline is now.
Final Agreement Remains Uncertain
Despite President Biden’s optimism around reaching an agreement before June 1st ,it remains uncertain whether or not they can form enough common ground between them with enough time remaining until then.. Even though McCarthy expressed confidence in avoiding defaulting on US debts at least now there appears to be structure for negotiations, only time will tell whether or not it will be successful in preventing what could be catastrophic financial fallout for all involved parties including investors in risk assets like Bitcoin (BTC).