Negotiations on U. S. national debt delayed
2023.02.05 14:18
Negotiations on U. S. national debt delayed
By Kristina Sobol
Budrigannews.com – Despite the fact that President Joe Biden is prepared to discuss spending with congressional Republicans, a White House economic adviser stated that negotiations regarding raising the US debt ceiling are an “absolute nonstarter” for the president.
On “Fox News Sunday,” a member of Biden’s Council of Economic Advisers named Jared Bernstein stated, “There is a separate set of discussions and negotiations over fiscal policy.” We have our budget, and we would like to see what Republicans have.
He stated, “That’s the conversation that the president is anxious to have with Republicans.” But the problem is that they really need to come up with a plan.
After Biden and House Speaker Kevin McCarthy met on February 1 for what the White House described as a “frank and straightforward dialogue” that will continue, Bernstein’s remarks are the latest positioning in a looming conflict over the debt limit.
In exchange for raising the limit, Republicans in Congress have stated that they want cuts to the federal budget. The United States runs the risk of going into debt default if Congress does not raise the ceiling by June.
Bernstein stated, “The negotiation over the debt ceiling and default is an absolute nonstarter for this president.”
The debt of the federal government cannot exceed $31.4 trillion under the law, which was set on January 19. Using unique accounting techniques, the Treasury has stated that it can survive at least through the beginning of June.
Lawrence Summers, a former US Treasury Secretary, advised Biden to stand firm against hardline Republicans who are tying a higher debt ceiling to spending cuts.
Summers stated on Sunday’s episode of CNN’s “Fareed Zakaria GPS” that “Fifteen people can’t stop the debt limit, unless 210 other Republicans are committed to vote with them.” Democrats and some Republicans can raise the debt ceiling with just a few responsible Republicans.”
Biden has stated that Congress is obligated by the Constitution to avoid a US default.
Summers stated, “I think he should be staying very strong.” Considering future spending, will there be any cosmetic items? It’s possible that there will be. However, fundamentally, this is not a matter for bargaining.
According to Gary Cohn, IBM vice chairman and former economic adviser to President Donald Trump, Biden and McCarthy are aware of the stakes.
He stated on CBS’s “Face the Nation” that “I feel they both understand there is no choice at the end of the day we have to raise the debt ceiling.”
He stated, “The question is, can the Republicans get something in the debt-ceiling legislation that they believe is a win and that Democrats are willing to give them?” That has occurred numerous times in the past.
