Impasse in Debt Ceiling Talks as White House and Republican Opposition Trade Accusations
Key Highlights :
The US government is facing a potentially catastrophic default if a debt ceiling deal is not reached between the White House and the Republican opposition. Late Saturday, the two sides appeared to be at an impasse, trading accusations as time runs out to avoid a US default.
On Friday, the Republican offer was deemed "a big step back" by White House spokesperson Karine Jean-Pierre. She argued that it contained "a set of extreme partisan demands that could never pass both Houses of Congress." The White House memo sent to newsrooms detailed the proposals and sought to prevent Republicans from blaming Democrats for the situation.
Top congressional Republican Kevin McCarthy responded by tweeting that the White House was "moving backward" in the talks. He argued that the far-left of the Democratic Party, which he referred to as the "socialist wing," was in control.
The Treasury Department has warned that the US government could run out of money as early as June 1, triggering a global economic disruption. The political battle in Washington continues without any clear sign of resolution. Republicans are demanding steep budget cuts in exchange for an extension of the government's borrowing authority. The White House is attempting to reduce those demands while arguing that the debt ceiling increase should be uncontroversial.
Hopes for a settlement took a blow Friday when Republicans walked out of negotiations, declaring a "pause." However, the talks had restarted hours later, leading Jean-Pierre to say "we are indeed optimistic." President Biden, who has expressed a willingness to be patient and said he was not worried, leaves Japan for Washington on Sunday, cutting short a trip that had been set to take him to Papua New Guinea and Australia next week.
White House spokesperson Andrew Bates accused Republicans of seeking to trigger a recession by making "0 demands to avoid default." He argued that the Republican opposition is the only party with a "hostage," and that the White House is merely seeking to extend the debt ceiling.
The political battle in Washington continues without any clear sign of resolution. In order to avoid a potentially catastrophic US default, the White House and the Republican opposition must come to an agreement on the debt ceiling.
