Monday, June 5, 2023
HomeEconomyBiden, House Republicans gear up for key U.S. debt ceiling talks

Biden, House Republicans gear up for key U.S. debt ceiling talks

David Morgan, Jeff Mason and Andy Sullivan

WASHINGTON (Reuters) – President Joe Biden and Republican House Speaker Kevin McCarthy delivered a speech on Monday. Preparations for key debt-ceiling talks, including two weeks before the U.S. government is running short on cash to pay its bills.

Democratic and Republican operatives are trying to find common ground on spending levels and energy regulations by 3 p.m. ET (1900GMT) On Tuesday, Biden, McCarthy and three other top congressional leaders met.

The White House has not ruled out that the annual spending cap, which Republicans say must accompany an increase in the nation’s $4 trillion debt ceiling.

Republicans, which control the House of Representatives, said they would not vote to raise the debt ceiling unless Democrats agree to deep spending cuts. Failure to remove the cap – a move necessary to pay for the cost of spending and tax cuts previously approved by Congress – could trigger a default that could spark a sharp economic downturn.

But McCarthy said before meeting with McCarthy, Democratic Senate Majority Leader Chuck Schumer, Senate Republican Leader Mitch McConnell and House Democratic leader Hakeem Jeffries, He saw few signs of progress, and Biden was due to leave Washington the day before for the Group of Seven meeting in Japan.

“They’re not good at all. I don’t see any progress and that really worries me about the timeline we’re on,” McCarthy told reporters, referring to the talks. “We have big issues to fix, you have to get through the House and the Senate, but there’s certainly not enough progress to see that.”

Asked if Biden should leave for not reaching the debt ceiling Japan of the agreement, McCarthy told reporters: “Look, I think the President of the United States should focus on the American solution. I think that shows your values ​​and your priorities.”

Biden in He made no public comment on the status of the talks on Monday after telling reporters on Sunday that he thought both sides wanted a deal. “I think we can get there,” he said May appear on June 1st. Let investors and consumers worry.

Budget negotiations

Biden insisted that Congress must unconditionally increase the country’s borrowing capacity, but the White House said it was also willing to discuss budget issues with House Republicans.

White House National Economic Council Chairman Lyle Brainard on “CBS Sunday.”

Republicans face pressure from former President Donald Trump, who said they should allow the state to default unless all their demands are met.

“Now is better than later,” he wrote on social media. Lawmakers have raised the debt ceiling three times during Trump’s presidency, a move Congress routinely takes to cover the cost of spending and tax cuts it previously approved.

House Republicans passed legislation in April that would raise the $1.5 trillion debt ceiling and cut spending by $4.8 trillion, mostly by cutting annual discretionary spending by 8% next year. % and limit growth for the next few years.

Democrats said they would not agree to other elements of the legislation, such as repealing Biden’s student loan forgiveness efforts and increasing work requirements for certain benefit programs.

But they don’t rule out spending caps.

Representative Don Bacon, a leading centrist Republican, told reporters Friday that a deal could call for a 2 percent annual increase instead of the 1 percent mandated by the GOP bill.

The White House and Republicans may agree to loosen permitting requirements for pipelines and other energy infrastructure — though it will take time to draft legislation, conservative researcher Burke said. Brian Riedl said Manhattan Institute.

The longer it takes for the parties to reach an agreement, the smaller the deal, he said. “The race is going to shrink because you’re running out of time for broader policy,” he said.



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