Subhechcha Ganguly 
The US Congress has established a spending cap known as the “debt ceiling” that sets a limit on how much money the government may borrow.Republican House Speaker Kevin McCarthy and US President Joe Biden met face-to-face to discuss lifting the nation’s debt ceiling. The US Congress has established a spending cap known as the “debt ceiling” that sets a limit on how much money the government may borrow.Despite the fact that the two were unable to come to an agreement, McCarthy remarked after the meeting, “I believe we can get a deal done.” “An agreement has not yet been reached. However, I did think that the conversation was fruitful in the areas where we disagreed. I will speak with Biden every day until we resolve this, McCarthy stated.
While Joe Biden stated in a statement, “I just had a fruitful conversation with Speaker McCarthy about the need to avoid default and a catastrophe for our economy. We emphasised once more that default is not an option and that the only way forward is to work sincerely towards a compromise between the two parties.This comes at a time when Goldman Sachs predicted that the US will run out of money in three weeks if its debt problem is not resolved. By June 8 or June 9, the Treasury Department’s cash balance would fall below $30 billion (£24.1 billion), the absolute minimum needed for the greatest economy in the world to meet its obligations.The projection is “subject to substantial uncertainty, so there is certainly a chance that receipts could slow more than expected and leave the Treasury short of cash by June 1 or 2,” the bank’s economists Alec Phillips and Tim Krupa said.A US economic slump brought on by a US debt default would almost certainly have a negative impact on economies all over the world.
