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Peter Davis

An writer at FOMOdrive

  • Jun 19, 2023
  • 2 min read

Biden and Congressional leaders fail debt ceiling talks

No solutions have been found by Biden and Congressional leaders to increase the US national debt ceiling.

According to Goldman Sachs, there is a genuine danger that the US dollar could be adversely affected by the issues surrounding the debt ceiling.

US default could have "inconceivable" consequences, according to Wall Street.

US Treasury Secretary Janet Yellen recently warned that the US government may not have enough funds to make payments on public debt by June 1, and thus be forced to default.

At the White House, House Speaker Kevin McCarthy reported that President Biden and the US Congress leaders were unable to reach a resolution on the matter of increasing the US national debt ceiling, despite an hour-long discussion.

He said that the meeting attendees kept reiterating their stances without making any progress on the matter, so Biden proposed to reconvene on Friday.

The US House of Representatives, led by Republicans, voted to increase the nation's debt limit, but only if there were major reductions in government spending. Democrats, however, did not agree with this decision.

Karine Jean-Pierre, White House press secretary, later stated that Biden plans to increase the US debt limit without any conditions.

US Treasury was warned by Wall Street bankers about the "unimaginable" repercussions of the nation's default. The magnitude of the negative impacts from prolonged negotiations or default cannot be calculated.

Goldman Sachs has warned of a "real risk" to the US dollar, citing issues with the debt ceiling and suggesting that it should be abolished altogether.

Elon Musk, an American billionaire, believes that default in the US is unavoidable; the only unknown is when it will occur.

Evercore predicted that US politicians would only reach a consensus on the national debt ceiling if there was a significant drop in the stock market.

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