In his statement minutes ago, Speaker of the US House of Representatives Kevin McCarthy said that he does not think that the US debt will default and that he believes an agreement can be reached with the Democrats to raise the debt ceiling.
"I Don't Think The USA Will Default"
McCarthy said he and other Republicans offered Democrats many concessions, including spending ceilings and work requirements for social programs that he initially said were Democrats' ideas.
However, he also said the Democrats had the problem with the state of the debt talks and they refused to bring up a clean debt ceiling bill. He said there are still differences in spending levels and priorities, but he thinks progress can be made today.
The U.S. Treasury Department has warned that unless Congress raises the debt limit, it will run out of cash to pay its bills.
McCarthy also said he would send his negotiators to the White House to finalize talks with President Joe Biden and his administration.
If the US fails to pay its debts, this will have serious consequences for Bitcoin, the economy and financial markets. In a report published on May 3, the US Treasury Department announced that it expected a 45% drop in stock markets if the US could not pay its debts.
*Not investment advice.