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Biden is set to meet with top lawmakers on Tuesday to discuss a potential debt ceiling agreement. McCarthy passed a bill in the House that would raise the debt ceiling through March of next year, and it was accompanied by over $4.5 trillion in spending cuts. Even so, some progressive lawmakers have warned the president that he should not bend on Democratic priorities to raise the debt ceiling. Multiple reports have suggested that the White House was considering compromising on rescinding unspent pandemic funding and energy permitting reform in a debt ceiling deal. Democrats – including President Biden – have been clear: these dangerous proposals are not going anywhere.
“I don’t think we’re in a good place,” Mr. McCarthy said. Mr. McCarthy said on Monday that he wanted to negotiate some of the key provisions of the bill to raise the debt limit that House Republicans passed last month. Mr. Biden is also scheduled to leave for Japan on Wednesday to attend the Group of 7 meeting, heightening the sense of urgency to make progress on the debt limit. While Mr. McCarthy played down progress, Mr. Biden and his allies said the White House and congressional teams have had productive talks in recent days. “We welcome a bipartisan debate about our nation’s fiscal future,” Mr. Schumer said on Monday.
But attendees said they made progress, including through an agreement to turn the multilateral debt limit negotiations into direct one-to-one talks between a close ally of House Speaker Kevin McCarthy and two White House aides, on Biden's behalf. The White House said Biden "directed staff to continue to meet daily on outstanding issues. It was "a good and productive meeting," said Senate Majority Leader Chuck Schumer, D-N.Y., who noted that it was "more cordial" than a previous meeting last week. The White House also said Tuesday that it would cancel the second leg of the president's upcoming international trip, given the delicate state of the debt ceiling negotiations. His return will set up a critical stretch in the efforts to avoid a first-ever default on U.S. debt and prevent major economic damage.
[1/2] The United States Department of the Treasury is seen in Washington, D.C., U.S., August 30, 2020. In her second letter to Congress in two weeks, Treasury Secretary Janet Yellen confirmed that the agency will be unlikely to meet all U.S. government payment obligations by early June, triggering the first-ever U.S. default. The debt ceiling could become binding by June 1, she said. She said she will provide an additional update to Congress next week as more information becomes available. The non-partisan Congressional Budget Office last week said the United States faces a "significant risk" of defaulting on payment obligations within the first two weeks of June without a debt ceiling hike, with payment operations uncertain throughout May.
Traders work on the floor of the New York Stock Exchange during morning trading on April 10, 2023 in New York City. Futures tied to the S&P 500 slipped 0.05%, while Nasdaq 100 futures inched lower by 0.08%. Investors are anxiously awaiting progress on a deal to raise the debt ceiling before June 1, which is the earliest date the Treasury Department has said the U.S. could default on its debt obligations. Biden has so far maintained that raising the debt ceiling is non-negotiable. McCarthy, however, has pushed for talks to broker a deal to raise the debt ceiling be tied to spending cuts.
Biden, McCarthy and the three other top congressional leaders were set to meet again on Friday. And he did not rule out eventually invoking the 14th amendment to the U.S. Constitution, an untested approach that would seek to declare the debt limit unconstitutional. U.S. President Joe Biden hosts debt limit talks with House Speaker Kevin McCarthy (R-CA) in the Oval Office at the White House in Washington, May 9, 2023. Biden would agree to a separate discussion on the budget but not tied to the debt ceiling, the White House said. Stalemate in Washington over raising the U.S. debt limit raises the risk of fresh turmoil for markets.
President Biden sought to drive a wedge among Republicans in their escalating dispute over spending and debt on Wednesday, effectively reaching out to moderates in hopes of convincing them to break away from Speaker Kevin McCarthy rather than risk triggering a national default that could throw the economy into a tailspin. Appearing in a competitive suburb with a vulnerable House Republican in his sights, Mr. Biden accused Mr. McCarthy of pursuing a radical strategy at the behest of the “extreme” wing of his party loyal to former President Donald J. Trump, putting the country in economic jeopardy in a way that he said reasonable Republicans of his own era in the Senate would not have done. “They’ve taken control of the House,” Mr. Biden said of this wing to a friendly audience at SUNY Westchester Community College in New York’s Hudson Valley. “They have a speaker who has his job because he yielded to the, quote, MAGA element of the party,” he added. Those hard-right Republicans, Mr. Biden said, are “literally, not figuratively, holding the economy hostage by threatening to default on our nation’s debt, debt we’ve already incurred, we’ve already incurred over the last couple hundred years, unless we give into their threats and demands.”
Speaker McCarthy is not calling on Santos to resign.
  + stars: | 2023-05-10 | by ( Annie Karni | ) www.nytimes.com   time to read: +1 min
Speaker Kevin McCarthy, who has made no move to penalize or marginalize Representative George Santos even in the face of mounting allegations of misconduct and lies by the first-term New York Republican, has signaled that Mr. Santos will be allowed to continue to serve in Congress even after being indicted on federal charges. “I’ll look at the charges,” Mr. McCarthy told reporters on Tuesday, before an indictment charging Mr. Santos with wire fraud, money laundering, theft of public funds and lying to Congress was unsealed. “If a person is indicted, they’re not on committees. “He was already removed from all his committees,” Representative Steve Scalise, Republican of Louisiana and majority leader, said during a morning news conference. “In America, there is a presumption of innocence but they’re serious charges.
Biden called the meeting “productive” and reported that McCarthy said during the meeting that the U.S. would not default on its debt. U.S. President Joe Biden hosts debt limit talks with House Speaker Kevin McCarthy (R-CA) in the Oval Office at the White House in Washington, May 9, 2023. Biden would agree to a separate discussion on the budget but not tied to the debt ceiling, the White House said. Prices for short-term Treasury bills fell on Tuesday as investors sold off debt that could come due around the time the U.S. debt limit could be hit. Stalemate in Washington over raising the U.S. debt limit raises the risk of fresh turmoil for markets.
Biden, McCarthy and the other participants were expected to offer their own version of the meeting later on Tuesday. Past debt ceiling fights have typically ended with a hastily arranged agreement in the final hours of negotiations, thus avoiding a default. U.S. President Joe Biden hosts debt limit talks with House Speaker Kevin McCarthy (R-CA) in the Oval Office at the White House in Washington, May 9, 2023. Biden would agree to a separate discussion on the budget but not tied to the debt ceiling, the White House said. Stalemate in Washington over raising the U.S. debt limit raises the risk of fresh turmoil for markets.
WASHINGTON — President Biden will meet with Speaker Kevin McCarthy at the White House on Tuesday in a critical face-to-face confrontation that will frame their showdown over the federal debt and spending in the weeks before the nation is set to default on its obligations for the first time in history. With the American and perhaps the global economy hanging in the balance, the meeting will be the first sit-down session between the Democratic president and Republican speaker since February. But even the terms of the discussion are in dispute: Mr. McCarthy insists the president negotiate a debt ceiling deal with him, while Mr. Biden insists the meeting will just be an opportunity to tell the speaker that there will be no negotiations over the limit. The meeting in the Oval Office will feature Mr. Biden, Mr. McCarthy and three other congressional leaders: Representative Hakeem Jeffries of New York, the Democratic leader in the House, and Senators Chuck Schumer of New York and Mitch McConnell of Kentucky, the Democratic and Republican leaders in the Senate. But Mr. Biden and Mr. McCarthy are the key players, locked in a political game of chicken to see who will blink first on raising the debt ceiling.
The US could breach the debt ceiling and run out of money to pay its debts as soon as June 1. A White House official previously told Insider that Biden would stress that Congress "must take action to avoid default without conditions." Additionally, Wall Street's response to the debt-ceiling crisis is different this time around. Even so, he added, this debt-ceiling crisis "seems much more dangerous" than the ones from the Obama years. Biden has options to avoid a debt-ceiling crisis that don't involve CongressTuesday's meeting between Biden and congressional leadership aims to break through the logjam.
After all, the only real alternative for Mr. McCarthy would be to go to court and seek to enjoin the president’s decision to continue to pay obligations — legal obligations already legislatively incurred. The impact of going to court to argue for defaulting on the nation’s debt, let alone the political optics for Mr. McCarthy, would be very risky. But it’s hard to see this availing them of anything other than impotent spectacle, further cementing their public image as unserious, especially if the president formally repudiates the debt ceiling now or this month rather than waiting until June. But suppose the Republicans take the president to court nonetheless. The president’s multiple arguments would be compelling, and the markets, in any case, are already pricing in worries of this sort.
It was just after Representative Nancy Mace, Republican of South Carolina, had fired off a blunt text to the No. “Now I’ll look like a flip-flopper,” Ms. Mace worried aloud. She anticipated criticism for the turnabout, but consoled herself with the fact that she had leveraged her vote to force her party to take on issues she cared about. “This is a way I can drive the debate,” she said as she walked back to her office. “It’s a way of using my position to push those issues.”
Budget Cuts in the G.O.P. If every agency is cut If defense, veterans’ health and border security are spared Defense Defense –18% 0% No change Veterans' medical Veterans' medical –18% 0% No change Health and Human Services Health and Human Services –18% –51% Education Education –18% –51% Housing and Urban Development Housing and Urban Development –18% –51% Homeland Security Homeland Security –18% 0% No change Justice Justice –18% –51% State State –18% –51% Transportation Transportation –18% –51% Agriculture Agriculture –18% –51% International aid International aid –18% –51% NASA NASA –18% –51% Veterans (other) Veterans (other) –18% –51% Energy Energy –18% –51% Interior Interior –18% –51% Treasury Treasury –18% –51% Labor Labor –18% –51% Social Security Administration Social Security Administration –18% –51% Commerce Commerce –18% –51% Environmental Protection Agency Environmental Protection Agency –18% –51% Corps of Engineers Corps of Engineers –18% –51% Other Other –18% –51% Source: Analysis of Congressional Budget Office data by Bobby Kogan, Center for American Progress Note: Figure shows base discretionary budget authority totals for 2024-2033. The New York TimesThe charts above show how exempting big categories of spending would make the budget caps more draconian. The budget caps aren’t the only changes in the current House bill that would reduce federal spending. tax enforcement Budget cuts would reduce tax collections, reducing the savings in the rest of the bill –$120 billion Sources: Committee for a Responsible Federal Budget ; Congressional Budget Office Note: TANF refers to the Temporary Assistance for Needy Families program.
When President Biden meets with congressional leaders at the White House on Tuesday, he will most likely reiterate his position that Congress should pass a bill lifting the debt ceiling without negotiations or conditions. A poll from Echelon Insights showed that voters support the idea of negotiating over the debt limit. But from the perspective of someone who had a front-row seat inside the White House to the last two debt-limit standoffs between a Democratic president and a Republican House, Mr. Biden’s refusal to negotiate on the debt ceiling is the best strategy. The president must know that Mr. McCarthy is not a negotiating partner who can be trusted to deliver. The speaker’s fate is in the hands of representatives — including many House Freedom Caucus members — who have shown very little willingness for compromise or good-faith negotiation.
Compared with his predecessors, Mr. Biden has given far fewer news conferences and rarely sits for interviews with journalists, instead opting for friendly celebrity interviews or softball social-media videos. His interview with Ms. Ruhle, who hosts a show on a network that leans sympathetic to Mr. Biden and Democratic causes, was broadcast at 10 p.m. on a Friday. But Mr. Biden has repeatedly said that he will not negotiate over the debt ceiling, pointing out that it was raised several times under former President Donald J. Trump without issue. “This is not your father’s Republican Party,” Mr. Biden said, repeating claims he has made before about extremists within the G.O.P. Where can we cut?”Mr. Biden is supposed to meet with Republican and Democratic leaders at the White House next week to discuss a path forward.
Congress is sparring again over raising the debt ceiling, and time is running out to avoid a default. Here's what the debt ceiling is and why it's so dangerous for the US economy. If that sounds familiar, you already know a fair deal about the "debt ceiling." The debt ceiling was introduced in 1917 to encourage the government to slow its borrowing. McCarthy and his GOP colleagues have been adamant that any debt ceiling raise should be tied to their own priorities, particularly in the form of spending cuts.
Opinion | Why Debt Chicken Is Such a Dangerous Game
  + stars: | 2023-05-05 | by ( Peter Coy | ) www.nytimes.com   time to read: +2 min
He is refusing to negotiate with McCarthy on spending cuts. He’s demanding a “clean” — that is, unconditional — increase of the debt ceiling. Let’s say a default badly damaged the economy. Because the party in the White House tends to do badly when the economy does badly, regardless of the reasons. McCarthy wouldn’t need to say a word about this on Tuesday: Both men know how politics work.
Wall Street Journal reporter Evan Gershkovich was detained in Russia on March 29 while on a reporting trip and accused of spying. Here’s a breakdown of the events surrounding his arrest and what comes next. Illustration: Todd JohnsonDemocratic and Republican leaders in the House of Representatives condemned Russia’s detention of journalist Evan Gershkovich and businessman Paul Whelan , calling for the prompt release of the two Americans. “We strongly condemn Russia’s ongoing and illegal detention of journalist Evan Gershkovich and call for his immediate release,” House Speaker Kevin McCarthy (R., Calif.) and House Minority Leader Hakeem Jeffries (D., N.Y.) said Thursday in a joint statement . Messrs. McCarthy and Jeffries called the charges against Mr. Gershkovich “manufactured.”
Peloton 's shares plummeted Thursday after the company reported a wider-than-expected loss in the fiscal third quarter and acknowledged an uncertain economic backdrop. The fitness company has sought to stabilize its business and find a path to profitability again, after seeing a sharp reversal of fortunes. The company ended its third quarter with about 3.1 million connected fitness subscriptions, up 5% from the year-ago period. Average net monthly connected fitness churn ticked up slightly from a year ago, too. In the fiscal fourth quarter, Peloton expects connected fitness subscriptions to rise, but revenue to drop.
Tucker Carlson won concessions from Kevin McCarthy in a deal that made him House speaker, per his texts. McCarthy needed 218 votes to win his bid to become House speaker, giving him a small margin of error. The result was 14 rounds of votes that failed to produce a House speaker, making it the most contested speaker election in more than 150 years. Grossberg discussed some of the conversations between her and Carlson regarding McCarthy's House Speaker election in an interview with CNN on Tuesday night. On January 7, the House held its 15th vote for House Speaker.
Democrats have prepared to use an obscure legal strategy to force a vote to raise the debt ceiling. Attempting the rarely-successful move, called a discharge petition, requires months of legal prep. All 213 Democratic members, plus five Republicans, need to sign the petition to bypass leadership. 218 petition signatures — meaning every single Democratic member of the House, as well as five Republicans willing to split with party leadership to force a vote on the stalled bill. He added: "Given Treasury Secretary Yellen's announcement yesterday that Congress may only have until June 1st to raise the debt limit to avoid a catastrophic default and Republicans' refusal to support a clean debt limit increase, Democrats are keeping all of our options open."
U.S. House Speaker Kevin McCarthy addresses the Israeli legislature in Jerusalem. Photo: abir sultan/ShutterstockJERUSALEM—House Speaker Kevin McCarthy said Monday that he would invite Israeli Prime Minister Benjamin Netanyahu to Congress if President Biden doesn’t invite him to the White House, amid tensions between the Israeli leader’s right-wing government and the Democratic administration. Mr. McCarthy (R., Calif.) told reporters that he expects Mr. Biden to invite the Israeli premier “especially because of Israel’s 75th anniversary,” which the country celebrated last week. Mr. McCarthy added that he had already invited Israeli President Isaac Herzog to address Congress this summer.
You know I’m no fan of Kevin McCarthy’s. Gail Collins: Bret, with your strong feelings about fiscal responsibility, you of all people should be offended by McCarthy’s ploy. But McCarthy now wants to use it as a hostage — attaching his wish-list of spending cuts (weaken the I.R.S.!) Bret: I don’t think anyone wants Uncle Sam to default on his debts — except, well, the nuttier Republicans who hold the balance of power in the House. McCarthy had to pass a bill that could garner their support.
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