Default prevention in the US called delaying the inevitable

Preventing a default in the US is delaying the inevitable, which will lead to worse consequences, said Vladimir Grigoriev, candidate of economic sciences, financial expert. In a conversation with Lenta.ru, he called the danger of preventing a default in the United States for the global economy.

Earlier, US President Joe Biden announced the prevention of a catastrophic default in the country. The agreement, which will prevent default in the United States, involves raising the national debt ceiling in exchange for limiting federal spending.

“But now it is difficult to determine the time at which a default can occur. Because the United States is still the largest economy, and the dollar is the most demanded currency in the modern world,” Grigoriev said.

Earlier, Speaker of the House of Representatives of Congress Kevin McCarthy announced that an agreement had been reached with the White House to prevent a default in the United States. At the same time, he previously accused Biden of inaction to resolve the situation around the national debt.

On May 2, US Treasury Secretary Janet Yellen warned that the country’s authorities could exhaust emergency measures due to reaching the national debt limit on June 1.