Florida Republican Governor Ron DeSantis said the deal will not save the US economy. Credit: AP Photo/John Rau
A handful of far-right Republicans said they would oppose a deal to raise the $31.4 trillion (£25.5 trillion) debt ceiling, highlighting the danger that the US would be hit by a “catastrophic » crisis. by default.
Conservatives criticized the deal between Joe Biden and Speaker of the House Kevin McCarthy for not delivering the big spending cuts they wanted.
Meanwhile, liberals bemoaned policy changes, such as new job requirements for older Americans in the food assistance program.
Florida Gov. Ron DeSantis, the 2024 Republican presidential nominee, said the deal does not do enough to change the fiscal trajectory.
He told Fox News: “After this deal, our country will still be close to bankruptcy.”
President Biden said he “feels good.” No. 34; on a debt ceiling agreement to be considered by the House Rules Committee this afternoon ahead of the full house vote expected on Wednesday.
0405 U.S. Net Government Debt
US Treasury Secretary Janet Yellen warned of "catastrophic" the consequences of not completing the deal, which could mean the US runs out of money as early as June 1 and could default on its debt.
Suddenly, Asian equities lost early gains as a possible default brought relief. was averted, gave way to fears of a compromise.
The package still needs to be approved by the Republican-controlled House of Representatives and the Democratic-controlled Senate before the debt limit is reached, likely by next Monday.< /p>
“The US has done a poor job of debt ceiling talks despite a huge rise in public debt and no real spending cuts, but for now (they) have eased the pressure”" said James Rosenberg, advisor to broker Ord Minnett in Sydney.
"There is still a huge gap between the bond and stock markets. The bond market suggests that there is a 70% chance of a US recession next year. These signals contrast sharply with a stable stock market"
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