Pressure To Raise Debt Ceiling Increases; Negotiations Continue

Objectivity 4.8 | Credibility 4.7 | Relevance 4.9

Debt ceiling negotiations are still under way as a possible default inches closer to the estimated deadline of June 1. Biden hopes the debt ceiling will be raised with minimal concessions to Republicans while McCarthy hopes for spending cuts. Both parties have expressed they do not want a default as the fallout would be economically and politically dire.  According to the White House Council of Economic Advisers, a protracted default could lead to an economic downturn comparable to the Great Recession with over 8 million people losing their jobs and the stock market value dropping by 45%. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said, “Since we don’t know exactly what the deadline is, the eleventh hour — you don’t know it until you’re in it. So I hope they’ll be able to pass it before that.”