Debt ceiling negotiations deteriorated after Republican negotiators rejected a White House offer to limit spending on both defense and a series of domestic programs, two people familiar with negotiations said Saturday.
Republicans instead pushed for increased military spending, which would require deeper cuts to a series of domestic spending programs that the White House has deemed off limits. With the deadline for a potential default less than two weeks away, House Speaker Kevin McCarthy said talks would likely not resume until President Joe Biden returned from Asia late Sunday night.
The impasse came as both sides sharpened their rhetoric, with White House aides abandoning their silence with a fusillade of attacks Saturday accusing the GOP of working in bad faith and threatening the financial stability and credit of the nation.
www.politico.com/news/2023/05/20/debt-ceiling-deadline-defense-biden-mccarthy-00098034
The Treasury is close to running out of borrowing headroom pic.twitter.com/K6HLjG0IjD
— Cheddar Flow (@CheddarFlow) May 19, 2023
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Actually, at this point I think Kevin McCarthy SHOULD just walk away and tell Biden to try the 14th amendment strategy.
It would be interesting to see how the bond market responded to debt issued beyond $31.4 trillion.
Odds are that rates would be MUCH higher. pic.twitter.com/EOHUcar5yl
— Wall Street Silver (@WallStreetSilv) May 20, 2023