US: Debt negotiations drag on

SGGP 05/28/2023 07:10

US Treasury Secretary Janet Yellen has revised her forecast for the deadline for raising the federal debt limit. The government could default on its debt on June 5, instead of the previously stated June 1.

US Treasury Secretary Janet Yellen. Source: VNA

In a letter to Congress, Ms. Yellen said the Treasury Department is expected to make about $130 billion in payments in the coming days, including payments to veterans, Social Security beneficiaries and Medicare health insurance programs.

Meanwhile, negotiations between US President Joe Biden and the Republican majority in the House of Representatives over the debt ceiling are expected to drag on into next week. According to Joe Biden, both sides are very close to an agreement. The remaining disagreement is the Republican Party's demand to cut spending on health insurance programs, food stamps and other federal aid programs to reduce budget spending by $11 billion over 10 years.

Democrats vehemently opposed the request. White House spokesman Andrew Bates called the Republican request “cruel and senseless,” according to AP.