House Speaker Kevin McCarthy says that a vote to raise or suspend the U.S. debt ceiling could be next week
U.S. House Speaker Kevin McCarthy is optimistic that a bipartisan vote on the U.S. debt ceiling could take place next week. McCarthy also told reporters that he can see a path through which the issue can be resolved. The Republican House Speaker said that they seem to be in a much better position now as compared to what they were in a week ago. The remarks made by Kevin McCarthy who was seriously concerned about the U.S. debt ceiling sent out a positive message to the people of the United States. U.S. president Joe Biden who is attending the G7 meeting in Japan and Kevin McCarthy have appointed representatives to negotiate a deal.
Senate majority leader Chuck Schumer said, “The negotiations are currently making progress”. He said that the senate will begin consideration after the vote is passed in the house next week. Chuck Schumer also informed the lawmakers to return on a 24 hour notice from the recess next week if they are needed to vote.
After investors seemed to be assured that the U.S. would not default, the U.S. market rallied for a 2nd day in a row reflecting the optimism on the Debt Ceiling deadline. The U.S. debt ceiling has been eyed closely by investors in recent weeks who are now seeing positive signs about the debt default.
Group of Democrats write letter to president to invoke 14th amendment
A group of 11 democrats including senator Bernie Sanders sent a letter to president Joe Biden urging him to invoke 14th amendment if the negotiations fail.
In a press conference at the U.S. capitol, independent senator Bernie Sanders said that in the past 63 years, the national debt limit has been raised a total of 80 times. Bernie Sanders expressed his views about the republicans’ unwillingness to agree on a bipartisan bill. He remarked that the debt payment is about what has already been spent and has nothing to do about future budget or spendings. Sanders also said that a default will be disastrous as it would cause loss of jobs and household wealth. The letters asks president biden to exercise his authority related to the debt under the 14th amendment of the constitution.
Vice President Kamala Harris also urges action on Debt-Ceiling
The Vice President of the United States Kamala Harris said during a virtual conference that the Congress must act on the U.S. debt of $ 31.4 trillion and the default should not happen. The vice president said to democrat activists to keep the focus on the debt-ceiling. She also said that defaulting on the debt would make the American economy go into a recession.
Lael Brainard, the director of National Economic Council and economic advisor said that president Biden who is attending G7 has informed his representatives not to agree on anything with republicans which might damage the economic health of the country. Republicans who have threatened to not to agree to the bill are making high demands of spending costs in exchange of lifting the debt limit. She said that their goal is to get to a reasonable bipartisan budget agreement.
