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Countdown To Catastrophe: Biden And Republicans Face Off Over Debt Ceiling

  • Posted on May 9, 2023
  • News
  • By TSW NEWS DESK
  • 289 Views
Political Powerhouses Unite: Biden, McCarthy, and Other Key Players Meet to Tackle Debt Limit Crisis

The $31.4 Trillion Question: Will Biden and Republicans Reach a Deal on Debt Ceiling?

As the clock ticks towards a potential default, President Joe Biden and top Republican lawmakers are set to face off in a high-stakes meeting on Tuesday to discuss raising the U.S. debt ceiling. The debt ceiling, which currently stands at $31.4 trillion, is a self-imposed borrowing limit that Congress must raise to allow the U.S. government to pay its bills. Failure to do so could lead to a catastrophic default that economists warn could send the U.S. economy into a deep recession and destabilize the global financial system that relies on U.S. bonds.


Debt Ceiling Debate Rages On: Democrats and Republicans at Odds Over Conditions

Despite the risks, there are no immediate signs that either side is willing to concede, and the meeting is expected to be the beginning of a tense and uncertain period of negotiations. Biden is calling on lawmakers to raise the debt ceiling without any conditions, while Republican House Speaker Kevin McCarthy insists that spending cuts must be made to address the growing budget deficit.


Higher Stakes, Bigger Risks: Will U.S. Avoid a Default This Time?

The situation is made even more precarious by political divides that have widened since the last debt ceiling fight in 2011. Back then, a last-minute agreement was reached to avoid a default, but it led to a downgrade of the country's credit rating. This time around, the stakes are even higher, and investors are bracing for impact.


Senate Majority Leader Chuck Schumer, Republican Senate Leader Mitch McConnell, and top House Democrat Hakeem Jeffries.
Biden and House Speaker Kevin McCarthy are pictured here on Capitol Hill (ImJabin Botsford/The Washington Post/Getty Images)



The Race Against Time: Bipartisan Agreement on Debt Limit Reform is Crucial, says Chamber of Commerce

The U.S. Chamber of Commerce, the country's largest business association, has urged swift bipartisan action on the debt limit that includes reforms and an agreement on discretionary spending caps. However, it remains to be seen whether either side is willing to compromise.


Political Powerhouses Unite: Biden, McCarthy, and Other Key Players Meet to Tackle Debt Limit Crisis

The much-anticipated meeting between Biden and McCarthy is scheduled for the first time since February 1. The power-packed gathering will also include the presence of notable political figures like Senate Majority Leader Chuck Schumer, Republican Senate Leader Mitch McConnell, and top House Democrat Hakeem Jeffries. The start of active talks could calm investors' nerves, but with just seven days before June 1 when a default could occur, time is running out.


Time is Running Out: Can Biden and Congress Reach a Debt Ceiling Deal Before Recess?

Adding to the sense of urgency is Biden's foreign travel plans and upcoming House and Senate recesses, which mean that there are only a handful of days when all three parties will be in town before the deadline.


To Raise or Not to Raise: The Consequences of the Debt Ceiling

If the U.S. government doesn't increase the debt limit, it could lead to a massive economic blow and decrease the value of the dollar as the global reserve currency, according to the cautionary words of Treasury Secretary Janet Yellen. The U.S. debt ceiling is a unique policy that few countries have, and increasing the borrowing limit only allows the government to pay for expenses that Congress has already approved.


Constitutional Showdown: Can Biden Use the 14th Amendment to Raise the Debt Ceiling?

White House officials have discussed whether Biden has the authority to lift the debt limit on his own by invoking the 14th amendment of the U.S. Constitution, which says the validity of the public debt "shall not be questioned." However, Biden has said he has not yet considered this option.


The U.S. Chamber of Commerce, the country's largest business association, has urged swift bipartisan action on the debt limit that includes reforms and an agreement on discretionary spending caps.
Markets this week will be closely attuned to the latest inflation reading, with all eyes on CPI. Investors will also need to watch the looming deadline for raising the U.S. government debt ceiling. WSJ’s Dion Rabouin explains.(Photo Credit: Andrew Kelly/Reuters)


Economic Crisis on the Horizon: Investors on Edge as Debt Ceiling Negotiations Stall

Investors are watching the negotiations closely, and last week, they forced the federal government to pay its highest interest ever for a one-month debt issue. A lengthy default could have dire consequences, with economists warning of a deep recession and soaring unemployment that would have global repercussions.


Debt Ceiling Talks Reach Critical Point: Can Political Differences Be Put Aside?

The outcome of Tuesday's meeting is uncertain, but one thing is clear: both sides need to come to an agreement quickly to avoid a disastrous default. The U.S. economy is still recovering from the COVID-19 pandemic, and a default could undo much of the progress that has been made. The situation is tense, and there's a lot at stake, so the parties involved are under immense pressure to come to an agreement. Only time will tell whether Congress can rise to the occasion and put aside political differences for the good of the country.


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