House Speaker Kevin McCarthy told Bloomberg that Wall Street should be concerned about U.S. debt ceiling negotiations.
He
said Republicans will continue to oppose increasing the country's
borrowing limit unless they can win concessions from Democratic
lawmakers.
- Republicans have threatened to prevent the U.S. debt ceiling from being raised unless the federal government cuts spending.
- In his State of the Union Address
in February, U.S. President Joe Biden criticized Republicans who he
alleged were using the debt ceiling as leverage for winning concessions
from Democrats.
- McCarthy said he has tried to meet with Biden about the issue but claims that "the president won’t communicate.”
- Biden has previously urged the GOP leadership
to clarify its demands. However, McCarthy did not detail what spending
cuts House Republicans are seeking in exchange for their support to
raise the debt ceiling.
- He suggested that some clarity may emerge later this month, when House Republicans return to Washington.
- Investors are pricing in the remote possibility that the U.S. may default on its debts due to a political impasse over the government's borrowing limit.
