On Wednesday, House Speaker Kevin McCarthy adopted a defiant stance, absolving himself of responsibility for the debt ceiling standoff.

He dispatched Republican negotiators to the White House to conclude discussions but emphasized that more time is required for reaching a budget agreement with President Joe Biden, the Associated Press reported.

McCarthy expressed cautious optimism about the prospects of reaching a resolution before an impending deadline, potentially within the next week, when the Treasury Department might exhaust its funds for bill payments.

The escalating tension in Washington surrounding the debt default crisis, which could have unprecedented consequences in modern times and reverberate globally, has left financial markets on edge.

Towards the end of the day, Fitch Ratings agency took action by placing the United States’ AAA credit rating on “ratings watch negative.”

The agency highlighted the brinkmanship and political partisanship surrounding the debt ceiling issue as potential factors that could lead to a downgrade, as reported by the AP.

In response, the White House attributed the risk of a catastrophic default to the Republicans led by McCarthy, accusing them of demanding “extreme” spending cuts that would adversely affect millions of Americans.

They warned that such a default would have far-reaching repercussions, impacting every aspect of the country.

Written by staff