President of the U.S.A Joe Biden today looked optimistic that he would agree on a budget with representatives Republicans and Democrats in Congress, and that the country is not going to default.

Speaking before leaving for Japan for the G7 summit, Biden said the negotiators would meet again on Wednesday and he would remain in close contact with them during his trip.

“We will continue negotiations until we come to an agreement” on raising the debt limit, he told reporters, stressing that congressional officials he met on Tuesday “agree to avoid a default.”

Biden also said that he would hold a press conference on Sunday on the issue of raising the national debt limit. The president is pushing for Congress’s constitutional duty to raise the borrowing limit, which is already $31.4 trillion. dollars (28.6 trillion euros) without conditions.

The limit is set by law and cannot be increased except by the decision of Congress. Without it, the country will no longer be able to service its debt obligations, which Mrs. Yellen warned could happen as early as June 1st.

The Republican-majority House of Representatives passed a bill in late April calling for a sharp cut in government spending in exchange for a higher borrowing limit.

For its part, the Treasury Office warned early on the dangers of the superpower’s mounting debt and pointed to the risk of undermining investor confidence in the US government’s ability to repay its debt. As he pointed out, such fears could “lead interest rates to a sharp increase, and inflation to an uncontrolled acceleration.” Meanwhile, the debt exceeded 31 trillion. The dollar is a problem for President Biden, who has promised a sort of fiscal consolidation for the superpower and cut the budget deficit by one trillion. dollars per decade.

Source: APE-MPE-Reuters-AFP.