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McCarthy Renews Calls for Spending Cuts to Raise Debt Ceiling

House Speaker Kevin McCarthy said he would seek to negotiate with President Biden over raising the federal debt ceiling but renewed his calls for cuts in spending https://t.co/zqxc0ZlUPn

— WSJ Politics (@WSJPolitics) January 15, 2023

The Wall Street Journal reports McCarthy Renews Calls for Spending Cuts to Raise Debt Ceiling

House Speaker Kevin McCarthy (R., Calif.) said Sunday he would seek to negotiate with President Biden over raising the federal debt ceiling but renewed his calls for cuts in spending, days after the Treasury Department said the government may not be able to pay its bills by early summer.

“Let’s sit down together. Let’s look at the places that we can change our behavior,” Mr. McCarthy said in an interview on Fox News. “Why would we sit back and be so arrogant to say, ‘No, there’s no waste in government?’”

Treasury Secretary Janet Yellen on Friday called on Congress to raise the debt ceiling as quickly as possible. She said the government would hit the roughly $31.4 trillion borrowing limit on Jan. 19, when Treasury will begin implementing so-called extraordinary measures to manage the government’s cash flow that are expected to last at least until early June. Republicans, who recently took control of the House, have insisted that any increase of the debt limit include cuts in spending, a demand that many Democrats reject. The White House has called on Congress to raise the debt ceiling without conditions.

“There’s going to be no negotiation over it. This is something that must get done,” White House press secretary Karine Jean-Pierre said Friday, noting that lawmakers have previously increased the debt ceiling on a bipartisan basis.

“It is one of the basic items that Congress has to deal with, and it should be done without condition,” she said. 

Yellen's Letter to Congress

“While Treasury is not currently able to provide an estimate of how long extraordinary measures will enable us to continue to pay the government’s obligations, it is unlikely that cash and extraordinary measures will be exhausted before early June,” Ms. Yellen wrote to Congressional leaders. 
 

Question of the Day

When does McCarthy buckle on the debt ceiling?

Sooner, later, or not at all? 

Question of the Day:
When does McCarthy buckle on the debt ceiling?

Sooner: Before May
Later: Up to 2 weeks before money runs out
Really Late: Some Emergency Agency Shutdowns
Not At All: Democrats Agree to Some Cuts

— Mike "Mish" Shedlock (@MishGEA) January 16, 2023

My guess is at the last minute, possibly even after the last minute when some closures happen.  

I rather doubt Democrats will give an inch. If not, McCarthy likely to be humiliated.

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