From the BBC:
“Lawmakers in Washington are preparing to leave town for a
holiday weekend, with time running out to reach a deal over raising the debt
ceiling.”
The US Treasury has warned that the country will not have
enough money to pay all of its bills as soon as 1 June. Analysts say if the US
fails to honour obligations it could have severe economic consequences. Investor
worries have increased, despite assurances from negotiators that talks are
making progress.
Republicans are seeking spending cuts to government programmes,
in exchange for raising the $31.4tn (£25tn) cap on government borrowing. House
Speaker Kevin McCarthy, who leads Republicans in the House and has been the
most high-profile public face of the talks for his party, said Democrats and
Republicans had worked past midnight on Wednesday and would continue to
negotiate. "There's a couple of issues still hanging out there that we've
got to get done," he said. "We're gonna work 24/7 to try to make that
happen." There is no current plan for the two sides to meet on Thursday,
but that could change. Another key Republican said he believed a deal to raise
the nation's debt-ceiling deal was "likely" by Friday afternoon. "We
are inching closer to a deal. I think it's some of the finer points they are
working on right now," Rep Kevin Hern told Reuters. "You are likely
to see a deal by tomorrow afternoon."
The S&P 500 and the Nasdaq were trading higher at midday
on Thursday, lifted by positive updates on earnings from some companies, while
the Dow Jones Industrial Average was down about 0.6%. That followed several
days of declines. Fitch Ratings, one of the big three credit ratings agencies,
on Wednesday said it had put the US on "negative watch" - the first
step toward lowering the country's credit rating. It cited "increased
political partisanship" and weak governance compared to other countries
that hold its top rating. "The brinkmanship over the debt ceiling, failure
of the US authorities to meaningfully tackle medium-term fiscal challenges that
will lead to rising budget deficits, and a growing debt burden signal downside
risks to US creditworthiness," the company said.
Mr McCarthy has promised to give lawmakers 72 hours to review
the bill, and at least 24 hours' notice if they have to return to Washington
early. If a deal is reached this week, a vote could happen early next week. There
is little wiggle room for objections to be raised, as the Senate would also
have to vote on the bill, which would then go to the White House for signing. Lawmakers
could also temporarily lift the debt cap to give the talks more time.
^ It's nice to see
them not take any of this seriously. I guess something that directly affects
330 Million American Men, Women and Children is not important to them. ^
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.