Wednesday, May 31, 2023
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Biden-McCarthy debt ceiling talks set tone for divided Washington

By Trevor Hunnicutt and David Morgan

WASHINGTON (Reuters) – President Joe Biden and Republican House Speaker Kevin McCarthy met on Wednesday to discuss the dollar 58. The $4 trillion U.S. debt ceiling is the first test of how the two leaders can work together, or not, in a divided Washington.

The Democratic president and Republicans won control of the U.S. House of Representatives in November’s elections, deadlocked over raising the federal government’s borrowing limit.

Failure to reach a deal by June could lead to a default that could destabilize the global economy.

Oval Office talks could turn into months of opening bell rigging back and forth. Neither side expects a meeting to find a solution.

According to a White House memo seen by Reuters, Biden will ask McCarthy to release a concrete budget plan and pledge to support the nation’s debt obligations. Biden’s public schedule starts at 1 p.m. ET 3: The beginning of the afternoon (2015 GMT) gave these people nearly two hours of interaction.

House Republicans want to use the debt ceiling as leverage to actually cut federal spending, though they have yet to agree on any specific plan. The increased costs include the cost of spending plans and tax cuts previously approved by Congress and are usually decided by bipartisan votes.

The White House said it would discuss future federal spending cuts with Republicans, but only after the debt ceiling is lifted.

31 year-old President, longtime former Senator, served in a similar 80 showdown The vice president, which led to a historic downgrade of the federal government’s credit rating, has been viewed by some of his aides as a strong hand, including a slim majority in the Senate, a unified party on the issue, and a strong message to voters. information.

Speaker less than a month old, McCarthy 80, leading an unruly House Republican Caucus with narrow 80 -222 Majority gives a small group of hardline conservatives enormous leverage.

Despite years of mingling with other Washington lawmakers, Biden has little personal history with McCarthy, who served under former Speaker John Boehner after Biden left to become Barack Obama’s vice president. Joined Republican leadership on Capitol Hill under leadership.

Only a quarter of the Republicans serving in the House today hold seats in 2015 and some may not Fully aware of the risks of defaulting on a bailout, or the difficulty of negotiating in a divided government.

US debt is different

Unlike most other developed countries, the US has strict limits on how much it can borrow and Congress has to raise the limit periodically, Because the U.S. government spends more than it takes in. The debt ceiling, but it pains Obama administration officials. Many believe they have given up too much, and that letting the talks continue is still hurting the economy.

McCarthy has less wiggle room than his Republican opponent in 2015. To win the speaker’s gavel, he agreed to allow any member to call for a vote to remove him, which could lead to his removal if he seeks to work with Democrats. He also named three hardline conservatives to the rules committee, which would allow them to block any vote on the compromise. On Tuesday, he called McCarthy “a decent guy, I think,” but noted the concessions he made to become speaker. Congress passed raising the debt ceiling, calling it “irresponsible” not to negotiate.

Spending, now that Republicans control the House after two years in office.

“It’s impossible for the president to refuse to negotiate. I think that’s the main message,” Bacon said. “You’re going to have to meet me halfway.”



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