'US Debt Ceiling Extension Likely to Avoid National Default... NY Stock Market Rebounds (Update)'

Republican Senate Leader "Cooperates with Democratic Party"
Expected to Avoid National Default Crisis Scheduled for the 18th
Biden Criticizes "Republicans Playing Russian Roulette"

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. Republican Party has expressed its willingness to agree on resolving the debt ceiling issue that had raised concerns about a national default crisis. The New York stock market stopped falling and succeeded in rebounding.

Mitch McConnell, the Republican Senate Majority Leader, issued a statement agreeing to the debt ceiling increase negotiations.

Mitch McConnell, the Republican Senate Majority Leader, announced on the 6th (local time) in a statement that he agrees to temporarily suspend the federal government debt ceiling until December.

Leader McConnell stated, "We will allow the normal processing of the debt ceiling temporary suspension bill pushed by the Democrats to protect Americans from the crisis caused by the Democrats."

Accordingly, the Democrats are expected to secure more than 60 votes necessary to pass the procedural vote on extending the debt ceiling scheduled to be handled in the Senate that day. Furthermore, it is expected that the U.S. will be able to avoid the default crisis that was forecasted for the 18th.

It is known that Leader McConnell and Chuck Schumer, the Democratic Senate Majority Leader, will meet that day to discuss future response measures.

The change in the Republican Party's stance came after President Joe Biden and the Democrats pressured that if the debt ceiling increase or extension fails, an unprecedented national default crisis will occur and the Republicans will be held responsible.

President Biden met with business leaders at the White House that day and criticized, "The Republicans are playing Russian roulette," discussing the potential impact on the U.S. capital markets and individuals in the event of a national default caused by failure to raise the debt ceiling.

Janet Yellen, the Treasury Secretary who attended the meeting, also urged Congress for immediate action, saying, "Failure to raise the debt ceiling would be fatal not only to individuals but also to companies," and "Failure to raise the debt ceiling threatens the dollar's status as the key currency and would be a disaster for the American people and American industry."

After Leader McConnell's remarks were conveyed, the New York stock market immediately rebounded. As of 2:30 p.m., the Dow Jones Industrial Average was up 0.09%, the S&P 500 was up 0.18%, and the Nasdaq Composite was up 0.38%. The Nasdaq index had fallen as much as 1.5% earlier that morning.