FINANCE

U.S. Democrats set a showdown with Republicans over the federal debt limit


Reuters file photo: An American flag flies outside the U.S. Capitol dome in Washington on January 15th. Reuters / Tom Brenner / File photo

WASHINGTON (Reuters) – Top Democrats in the U.S. Congress said Monday they would aim to continue funding the government in the coming days and increase its authority over a single bill, setting up a showdown with Republicans who have pledged not to approve further debt.

House of Representatives Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer said the bill, which must be passed by October 1 to avoid the third partial government shutdown in the last decade, would also put the nation’s limitation on hold until after the 2022 election. Which party controls the Congress?

But with Senate Republicans vowing to oppose any increase in federal orron authority, the two parties are engaged in a dangerous game that could cause a government disruption or rarely a fight in the financial markets until an agreement is reached.

Democrat Sen. Patrick Leahy, chairman of the Senate Appropriations Committee overseeing government spending, told reporters that the law requires 60 votes in that chamber to be enacted, and with opposition Republicans, probably no vote to pass joint measures.

“I’m not sure what’s going to happen,” Leahy said.

He added that the talks ended inconclusively last weekend.

Democrats have so far rejected Senate Republican leader Mitch McConnell’s proposal that the limit be passed by a budget reconciliation bill that Democrats will pass under a special procedure without any Republican support.

Democrats insist there should be a bilateral effort to increase the debt limit.

“Anyone who says it’s the Democrats’ debt isn’t telling the truth, they’re telling the fiction. Both sides have a responsibility to pay off the debt we’ve already taken,” Schumer told the Senate.

Senate Republican leader Mitch McConnell reiterated his opposition to raising the limit after Schumer’s remarks.

“Since the Democrats have decided to go it alone, they won’t be helping Republicans raise the Republican limit,” McConnell said. He was referring to President Joe Biden’s 3.5 3.5.5 trillion domestic investment program, which Democrats aim to address through a reunion with Republicans.

Democrats have tripled the debt limit during the administration of Republican President Donald Trump, including those that did not support the tax authority on the rich and those that were linked to the country’s debt.

The current limit is 28 28.4 trillion as Congress failed to raise the limit by the July 31 deadline. That level has already been breached and now stands at $ 28.78 trillion. It is being temporarily funded by the Treasury Department through “extraordinary arrangements” that are likely to run out of exhaust sometime in October.

With a new fiscal year approaching on October 1, Congress did not approve the successive bills required for agencies to run normally.

As a result, a temporary spending bill is needed to avoid obstacles such as closing national parks. Failure to do so could disrupt security screening at the airport and thus cancel some flights.

A range of other government services that are considered “unnecessary” may also be disrupted.

Disclaimer: Fusion Media I would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (stocks, indexes, futures) and forex prices are provided by market makers rather than exchanges, and so prices may not be accurate and may differ from actual market prices, meaning prices are not indicative and suitable for trading purposes. Therefore, Fusion Media is not responsible for any of your trading losses as a result of using this data.

Fusion Media Or anyone involved with Fusion Media will not assume any liability for loss or damage as a result of relying on the information contained in this website, including data, quotes, charts and buy / sell signals. Please be fully aware of the risks and costs associated with trading in the financial markets, this is one of the potential risky investment forms.





Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button