OMAHA, Neb. (KMTV) — On Wednesday, credit rating agency, Fitch put the United States’ credit on “rating watch negative” because of the current negotiations over the debt limit.
If the debt limit is not raised before the US runs out of money to pay its bills, there could be dire consequences for the world economy.
Economists say that, in addition to higher interest rates, defaulting would likely lead to a recession and millions of people losing their jobs.
Nebraska Congressman Don Bacon says he doesn't think the two sides negotiating over the debt limit are far apart at this point, but there needs to be compromise.
“We have a lot of folks who want 100% or zero, and that's not how James Madison designed it. I think we're close. I anticipate being called back in on Tuesday or Wednesday, I hope,” said Bacon during a press conference with Nebraska news media on Thursday.
Bacon says one reason GOP lawmakers are using the debt limit as a moment to negotiate on the federal budget is that Republicans didn't support most of the spending that happened last year.
“I just hope President Biden meets us halfway. And I hope, if he does, I hope the speaker, my colleague, accepts that halfway handshake.”
Secretary of the Treasury Janet Yellen says the US could run out of money to pay its debts as early as June 1, but other economists say it may not come that soon. Fitch has also said it believes US lawmakers will reach a deal before the country defaults on its debts.
RELATED: Congress going home for Memorial Day weekend amid debt limit crisis
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