Government Hopes to End Debt Ceiling Struggle
Posted on 05/17/2023
President Biden is coming home early while on a tour of Asia, leaving out visits to Papua New Guinea and Australia that were on the schedule. Republicans had criticized him for leaving during the debt ceiling debate.
A White House spokesperson said: “The President has made clear that members of Congress from both parties and chambers must come together to prevent default, as they have 78 times before. The President and his team will continue to work with Congressional leadership to deliver a budget agreement that can reach the President’s desk.”
Treasury Secretary Janet Yellen seems to be the main figure on the side of the government on this topic. On May 16, Yellen said: “It is essential that Congress act as soon as possible. In my assessment and that of economists across the board, A U.S. default would generate an economic and financial catastrophe.” She went on: “A default would reverse all of the hard-earned progress that we have made.” She suggested that millions of Americans would not receive their payments from the federal government, “they need to get by.” Yellen has been banging the drum these past few weeks, typically using the word “catastrophe” in her remarks.
However, both sides seem to expect an agreement, with both Republican and Democrat leadership stating so. It is not yet clear what compromises will be taken. The two sides have yet to come close to each other’s proposals so far.
