Washington: A defiant House Speaker Kevin McCarthy said Wednesday the debt ceiling standoff was “not my fault” as he sent Republican negotiators to the White House to finish out talks, but warned the two sides need more time as they try to reach a budget deal with President Joe Biden.
McCarthy said he remained optimistic they could reach an agreement before a deadline as soon as next week, when the Treasury Department could run out of cash to pay its bills. Financial markets are teetering as Washington edges closer to a debt default crisis that would be unprecedented in modern times, sending shockwaves around the globe.
Fitch Ratings agency has placed the United States’ AAA credit on “ratings watch negative,” warning of a possible downgrade because of what it called the brinkmanship and political partisanship over lifting the debt ceiling.
The White House blamed the Republicans led by McCarthy for risking a devastating default that would hit “every single part of the country” as they demand “extreme” spending cuts that would hurt millions of Americans. “We’re not going to default,” McCarthy, R-Calif., assured.
