In a recent development superpower America is at the risk of bankruptcy within the next seven days.
As per news reports, if no deal is reached to raise the debt limit before June 1, the $31.4 trillion debt-laden world’s largest economy will crash.
US President Joe Biden held a crucial meeting with the Republican Speaker of the House of Representatives, Kevin McCarthy, to avert the crisis and raise the debt limit.
Joe Biden is hopeful that both sides understand the important responsibility of resolving the impasse.
House Speaker Kevin McCarthy said that the meeting with Joe Biden was positive but revealed that no deal had been reached so far.
He warned that if the US economy defaults, it would have repercussions around the world.
It should be noted that the Federal Reserve Bank increased the interest rate by 0.25 percent in the past few days, after which the interest rate in the United States reached its highest level in 16 years.
This was the 10th rate hike in the US in a little over a year.
Earlier, the International Monetary Fund (IMF) notified that if the US defaults, it will have serious effects on the global economy.
Moreover, the US Treasury Secretary issued an alert that if the debt limit is not raised, the US will default by June 1, unless Congress either raises the debt limit or suspends the limit.
With just a few days remaining until the deadline, the world anxiously waiting for the outcome of negotiations between the US administration and Congress.
