‘We are nowhere near a debt deal’… Biden’s only choice is to cut spending…

‘We are nowhere near a debt deal’…

Jake Sherman

The House Majority leader McCarthy spoke about making progress after the meeting yesterday with Pres. Biden. McCarthy described the meeting as “productive” and “professional,” though no agreement was reached. According to McCarthy, the discussion’s tone was more amicable than previous encounters.

McCarthy emphasized the importance of a compromise a

Biden Has No Good Options in Debt-Ceiling Fight

President Biden has no good options in Washington’s fight over raising the debt limit.

The U.S. could be unable to pay all of its bills as soon as June 1 if Biden and congressional Republicans can’t reach a deal—and every path forward carries political risks for the president.

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A government default could tip the country into recession and potentially unleash global financial chaos as Biden seeks re-election. Untried methods to pay the nation’s bills without Congress acting could also carry economic costs—and could require Biden to make painful political choices about who gets paid first.

Still, even holding spending talks with Republicans over the issue is courting backlash from progressive lawmakers, who say Biden is backtracking on his refusal to negotiate over raising the borrowing limit.

 

Will Fitch and Moody’s ever downgrade U.S. credit rating…

While President Joe Biden negotiates with Republicans in Congress on a plan to raise the debt limit and avoid an unprecedented default as soon as early next month, Wall Street’s credit-rating companies are standing pat — assuming disaster will be averted, even at the 11th hour.

Moody’s Investors Service’s William Foster, a senior credit officer, said in an interview on Wednesday that he was “hearing the right things out of Washington,” and his firm has kept the US’s top rating intact through the fitful negotiations since. So has Fitch Ratings.

Even S&P Global Ratings, which in 2011 drew fire for downgrading the US from AAA after a similar brush with default, has retained a stable outlook on the rating during the latest fracas, anticipating a deal will be struck.

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