The stakes are extremely high: If McCarthy and President Biden can’t agree on a deal, the federal government is at risk of defaulting on its debts, which would cause chaos in global financial markets. McCarthy and Biden met on May 9 to discuss the debt limit, but walked away without any real progress, aside from agreeing to meet again later in the week. Still, Governor Christie is confident both sides will eventually come to the bargaining table because the risk of not raising the federal debt is just too high.
Governor Christie points to the shakiness of the post-pandemic economy, including rising inflation and the banking crisis, as reasons why neither side will want to add to the current market instability. Also, he makes the argument that government spending rose significantly during both the Trump and Biden administrations, so there is some room for a compromise in both camps.
Christie is confident that, despite the current impasse, Biden and McCarthy will work out an eleventh-hour deal, “I think there will be a moment where they both say, ‘All right, I'm going to give you a little bit of what you need. I'm going to give you a little cover for what you need and we're going to move on.'"
Watch the full interview on the upcoming episode of GZERO World with Ian Bremmer, airing on US public television nationwide. Check local listings.
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