The countdown continues to avoid default by raising the debt limit in the USA. US President Joe Biden met with Republican representatives in Congress on Tuesday, but the meeting came to nothing.
Biden, who met with the Republicans, including the Speaker of the US House of Representatives Kevin McCarthy, evaluated the talks as “productive” and signaled that the coming days would pass with very tight negotiations. McCarthy, on the other hand, said that ‘I did not see any movement’ and stated that there was not much progress in this meeting.
US Treasury Secretary Janet Yellen warned that the country risks exhausting its ability to meet all its payment obligations by 1 June.
Wall Street is worried
Some of Wall Street’s most seasoned figures have warned of the “unimaginable” long-term consequences of a US default, arguing that the debt limit may need to be removed permanently.
In a letter to Yellen, the 17-member Treasury Borrowing Advisory Committee, which includes officials from Goldman Sachs and JPMorgan, said, “It’s time to develop an alternative method of meeting financial obligations, either by mandating raising limits simultaneously with allowances or removing the debt limit altogether. came,” he wrote.
Meanwhile, Goldman Sachs warned US stock investors that volatility and uncertainty could rise in the coming months due to the inflows of quantitative funds and the debt ceiling debate.