Tuesday, May 30, 2023
HomeBusinessBiden, McCarthy hope for debt ceiling deal, U.S. president cuts Asia trip...

Biden, McCarthy hope for debt ceiling deal, U.S. president cuts Asia trip short

Biden, McCarthy hopeful on debt ceiling deal, US president cuts Asia trip short © Reuters. FILE PHOTO: U.S. President Joe Biden holds debt limit talks with House Speaker Kevin McCarthy (R-CA) and other congressional leaders in the Oval Office of the White House in Washington, U.S., May 9, 2023. REUTERS/Kevin Lamarque/File Photo

By Nandita Bose and David Morgan

WASHINGTON (Reuters) – Democratic President Joe Biden and Congressional Republican leader Kevin McCarthy were close to a deal on Tuesday. A deal to avoid a looming U.S. debt default as the threat of an economic nightmare prompted Biden to cut short a trip to Asia this week.

After an hour of talks, House Speaker McCarthy told reporters that the two sides are in agreement to lift the debt ceiling. But he said, “It’s possible to get a deal by the end of the week. It’s not hard to get a deal.”

Democrats aren’t as aggressive about a quick time frame, but The White House called the meetings “productive and straightforward.” Biden said there was an “overwhelming consensus … that debt default is simply not an option. Our economy is going to be in recession.”

“There is still work to be done Speaking at a White House event honoring Jewish Americans, Biden said the parties “are trying to make sure America doesn’t default on its debt for the first time. ”

Biden said he was disappointed that Republicans would not consider ways to boost revenue. Raising taxes on the rich and corporations to help pay for other Americans ​​Program costs are a key part of Biden’s 2024 budget.

Biden with McCarthy, Senate Majority Leader Chuck Schumer, Senate Republican Leader Mitch McConnell Nair and House Democratic leader Hakeem Jeffries met for about an hour after their aides met over the weekend trying to

Unless Biden and his Democrats Republicans agree to cut federal budget spending, or Republicans refuse to vote to raise the debt ceiling to the $31.3 trillion ceiling. However, McConnell said after the meeting, “We know we will not default. ”

The U.S. government could default on some debt as early as June 1 unless Congress votes to remove the debt ceiling, economists fear the country will slip into recession.

Biden is “optimistic that if both sides negotiate in good faith and recognize that neither side will get everything they want,” the White House said.

Biden and congressional leaders’ staffs discussed the issue last week. Going forward, McCarthy said, the talks will narrow more engagement between House Republicans and the White House.

Biden, who left for Japan on Wednesday, said he would speak regularly on the phone with congressional leaders, and the White House said he would meet with them upon his return. Terrell will lead Government discussions, join Republican Rep. Garrett Graves.

Rohit Kumar, former top McConnell aide and now co-director of PwC’s IRS in Washington, said This kind of direct negotiation has a good track record. “It allows the administration to make some necessary concessions that won’t be popular with House and Senate Democrats, but that won’t jeopardize the passage of the deal,” he said.

Neil Bradley, chief policy officer at the U.S. Chamber of Commerce, welcomed the reduced scope and structure of the negotiations. There is a path forward in the agreement that raises the debt ceiling and introduces important reforms to improve our nation’s fiscal health. ”

The debt ceiling prompted Biden to skip stops in Papua New Guinea and Australia after attending the G7 summit of the world’s richest countries in Hiroshima, Japan.

“We’ve got a lot to do in a short period of time,” McCarthy told reporters, saying the Oval Office meeting set the stage for future conversations.

JOB REQUIREMENTS

Before the meeting, sources said, Biden and McCarthy aides had discussed Requirements for two key programs that provide food and cash assistance to families.

Expanding job requirements has been a key demand of Republicans, who are also pushing for spending cuts in return for their vote to raise the debt ceiling. McCarthy told reporters Tuesday that his party, which controls the House by a 222-213 margin, would only agree to a deal that cut spending.

“We can raise the debt ceiling if we limit our future spending,” McCarthy told reporters.

Both parties agree that urgent action is required.

Over the past week, staff from both sides have discussed a series of issues. In addition to work requirements for some entitlement programs for low-income Americans, spending caps and energy permit changes were proposed in exchange for a vote to lift the caps, according to people familiar with the talks.

Unnamed sources, who gave details of the closed-door talks, said the job requirements talks focused on the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps , and the Temporary Assistance Program for Needy Families.

Biden alluded to the negotiations in public remarks over the weekend, saying he would not consider such a move for Medicaid for low-income Americans.

Previous Downgrade

A similar 2011 debt ceiling impasse led to a historic downgrade of the US credit rating, triggering a Sell-off – The stock market falls and pushes up the government’s borrowing costs.

The current impasse has rattled investors and pushed the cost of insuring US government debt to a record high. A Reuters/Ipsos poll completed on Monday found that three-quarters of Americans fear a default would hit families like theirs hard.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LAST NEWS

Featured NEWS