Agreement on debt ceiling will be reached -CIO
STORY: U.S. President Joe Biden will insist in his State of the Union address on Tuesday (Feb. 7) that raising the debt limit of the United States is not negotiable, his top economic adviser Brian Deese said.
The U.S. government hit its $31.4 trillion debt ceiling last month, prompting the Treasury Department to warn that it may not be able to stave off default past early June.
Biden, a Democrat, last week met with Republican U.S. House of Representatives Speaker Kevin McCarthy to discuss a path forward.
The White House has said Biden will discuss federal spending cuts with Republicans, but only after the debt ceiling is lifted, while McCarthy has said Republicans will only lift the ceiling if Biden agrees to spending cuts.
"They're going to let this go to the very end to try and squeeze as much negotiating power out of it as possible," said Mahn, adding, "but don't worry investors... ultimately some agreement will be reached."
