McConnell says it’s McCarthy’s job to reach a debt ceiling deal

McConnell says it’s McCarthy’s job to reach a debt ceiling deal

top line

Senate Minority Leader Mitch McConnell (R-Ky.) told reporters Tuesday that he plans to take a hands-off approach to overcome the standoff between the White House and congressional Republicans over raising the ceiling on the debt, saying that the path to an agreement lies with the speaker of the Chamber. Kevin McCarthy (R-California).

key facts

McConnell said he “can’t imagine any type of debt limit measure” that could be passed by the Democratic-controlled Senate and also the Republican-led House of Representatives.

The senator said he can only see a solution through negotiations between McCarthy and President Joe Biden, but the two sides appear far from reaching an agreement.

McCarthy promised he would demand significant spending cuts in exchange for raising the debt ceiling as part of a deal he struck with a far-right contingent of House Republicans to win the presidency earlier this month, but the House Blanca has repeatedly said that spending cuts are out of the question. table.

McConnell backed the idea of ​​cutting spending in exchange for raising the debt ceiling, calling it an “entirely reasonable” proposition.

crucial appointment

“I wish him the best in speaking with the president. That is where the solution lies,” McConnell said.

key background

The federal government hit its $31.4 trillion debt limit last week, prompting Treasury Secretary Janet Yellen to take “extraordinary steps” to prevent a default as Congress and the White House reach an agreement. The United States has never defaulted on its debt before, and there would likely be disastrous economic consequences if it ever does. Yellen said she believes “extraordinary measures,” such as pausing some federal investments, will prevent a default until June 5, known as the “X date” for the national debt. If the debt ceiling is not raised by “date X”, the US will be unable to pay its bills, likely sending stocks tumbling and threatening the stability of federal programs.

what to observe

McCarthy said Friday that he agreed to meet with Biden to discuss the debt ceiling, but the White House quickly issued a statement saying the two plan to “discuss a variety of issues,” reiterating that he will not negotiate spending cuts in exchange for a deal. above the debt ceiling. .

what we don’t know

It’s unclear exactly what cuts McCarthy might push for. Speculation has grown that cuts to Social Security and Medicare could be proposed, but several prominent Republicans have spoken out against the idea. Former President Donald Trump said Friday: “Under no circumstances should Republicans vote to cut a single penny from Medicare or Social Security.”

Other reading

Debt ceiling showdown: President McCarthy says he will meet with Biden to find a solution (Forbes)

The debt ceiling, explained: what happens if the US doesn’t raise it (Forbes)

Kevin McCarthy elected Speaker of the House: Ending a historic impasse (Forbes)

Federal Government Officially Hits Debt Limit, Triggering ‘Extraordinary Measures’ To Avoid Default: Here’s What That Means (Forbes)

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