McCarthy Says Biden Jeopardizing US Economy by Stalling Debt Ceiling Negotiations

WASHINGTON (Pakistan Point News / Sputnik - 24th March, 2023) President Joe Biden is jeopardizing the US financial markets by delaying negotiations with Congress on raising the debt ceiling, House of Representatives Speaker Kevin McCarthy said on Friday.

"I have been waiting to get to the table the entire time. Unfortunately, the president doesn't think it's important," McCarthy said during a press conference. "He's really jeopardizing the financial markets of America by his activity."

The US economy is too important to play games with, McCarthy added.

Last month, Biden and McCarthy met to discuss raising the debt ceiling, during which McCarthy expressed concerns about doing so and continuing spending at such high levels. Biden emphasized the importance of increasing the nation's borrowing limit before it defaults on its financial obligations.

Earlier in March, Biden released his budget proposal for fiscal year 2024. The proposal projects $6.883 trillion in spending and $5.036 trillion in revenue, leading to a deficit of more than $1.8 trillion.

McCarthy called Biden's proposed budget "completely unserious" and reiterated concerns about government spending.

Although Republicans have not released an alternative budget proposal, US media reported earlier that the party's proposal could include measures such as reducing foreign aid by 45% and halving the FBI's counterintelligence funding in an effort to cut spending.

Earlier this week, US Treasury Secretary Janet Yellen said it is "utterly essential" to raise or suspend the country's debt limit ahead of a catastrophic default later this year.