President Joe Biden said Friday he is "hopeful" for a resolution within hours to the US debt ceiling standoff between Democrats and Republicans, raising hopes of an imminent end to the threat of default by the world's biggest economy.
It was by far the strongest indication that the drama in Washington might end, allowing the government to borrow and avoid a default likely to trigger a recession, mass job losses and recession. According to unconfirmed US media reports, the deal taking shape would include an agreement to extend the government's borrowing authority for two years, meaning no repeat of the current drama before the 2024 presidential election.
IMF Managing Director Kristalina Georgieva cited new data that she said showed the "US economy has proven resilient," but urged a "speedy resolution" to avoiding the first default in US history. "The president decided, the speaker has said it, and we have to get something done before June," Adeyemo said. "The president is committed to making sure that we have good faith negotiations with the Republicans to reach a deal because the alternative is catastrophic for all Americans."
Republicans call this taking responsibility for the $31 trillion national debt. The White House accuses the opposition party, which controls the House of Representatives, of taking the economy hostage.Democratic minority leader Hakeem Jeffries slammed the Republicans from the House floor on Thursday, accusing them of risking "a dangerous default in a crisis that they've created."