House of Representatives Speaker Kevin McCarthy says President Joe Biden is failing to adequately negotiate the raising of the US debt limit, and it should make people nervous.
In a new interview with CNBC, McCarthy says that he repeatedly criticized the president for not negotiating, and now a dangerously tight deadline to reach an agreement awaits.
Many analysts, including Bloomberg commodity strategist Mike McGlone, predict a financial crisis if a deal is not reached, and that risk assets like Bitcoin (BTC) would fare the worst.
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.”
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. That was probably difficult for him to say as president he would negotiate with somebody, but it’s really what the old Joe Biden was good at. And now we’ve got an opportunity for him to be back to what he used to be able to do and let’s get the job done.”
President Biden addressed the nation this morning, saying that he believes an agreement to avoid a default is imminent. He says that he and McCarthy have appointed senior members of their teams to hammer out a deal.
“I’m proud of the progress my administration has made. We reduced the deficit in the first two years by $1.7 trillion in the first two years, and I proposed a budget that will reduce another $3 trillion over the next decade. That includes more revenue by asking the wealthy and large corporations to begin to pay their fair share and cutting subsidies that exist in the law now to Big Oil and Big Pharma.
Yesterday, we all agreed that both speaker McCarthy and I would designate senior members, that we would negotiate.”
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