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When asked what message he would share with McCarthy, he declined to comment before talking with McCarthy first. The source also said House Republicans wanted to extend tax cuts passed under then-President Donald Trump, which would add $3.5 trillion to the federal debt. White House officials said they were expecting the call between Biden and McCarthy to take place as Biden flew home on Air Force One from the summit in Hiroshima. Biden heads back to Washington on Sunday after truncating his Asia trip to focus on the debt limit talks. Congressional Republicans voted to raise the debt ceiling three times, with no budget cut pre-conditions, when Republican Trump was in the White House.
HIROSHIMA, Japan, May 21 (Reuters) - U.S. President Joe Biden and top congressional Republican Kevin McCarthy could speak as soon as Sunday in talks over raising the federal $31.4 trillion debt ceiling. Biden will be headed back to Washington on Sunday after cutting his trip to Asia short to focus on the debt limit talks. The Republican-led House last month passed legislation would cut a wide swath of government spending by 8% next year. The source also said House Republicans want to extend tax cuts passed under former President Donald Trump, which would add $3.5 trillion to the federal debt. Congressional Republicans voted to raise the debt ceiling three times, with no budget cut pre-conditions, when Republican President Donald Trump was in the White House.
"Unfortunately, the White House moved backwards," McCarthy said, adding that the "socialist wing" of the Democratic Party appeared to be in control. McCarthy's office did not immediately respond to a request for comment on the White House statement. Democratic President Biden’s proposed 2024 budget and Republicans’ ‘Limit, Save, Grow’ Act will both generate budget savings over a decade, but how they will do so is starkly different. The source also said House Republicans want to extend tax cuts passed under former President Donald Trump, which would add $3.5 trillion to the federal debt. Congressional Republicans voted to raise the debt ceiling three times, with no budget cut pre-conditions, when Republican President Donald Trump was in the White House.
Washington quiet as debt ceiling deadline inches closer
  + stars: | 2023-05-20 | by ( ) www.reuters.com   time to read: +2 min
REUTERS/Nathan... Read moreWASHINGTON, May 20 (Reuters) - White House and Republican congressional negotiators on raising the federal $31.4 trillion debt ceiling were quiet on Saturday after meetings on Friday failed and President Joe Biden said in Japan he believed a default could be avoided. Biden said in Japan late on Friday Washington time that he still believed a default could be avoided. Biden was upbeat despite the White House acknowledging that "serious differences" remained with Republicans, who control the House of Representatives. Democrats have been pushing to hold spending steady at this year's levels, while Republicans want to return to 2022 levels. A plan passed by the House last month would cut a wide swath of government spending by 8% next year.
But he'll stay home on Election Day should Trump win his party's nomination to take on Joe Biden in 2024. In Pennsylvania and Michigan, the size of the Ukrainian-American community outstrips Trump's margin of victory in 2016, according to the analysis. During a CNN town hall last week, Trump refused to say if he wanted Ukraine to win its war with Russia, when questioned about the conflict. Neither politician responded to requests for comments about the Ukraine war, nor did the Republican National Committee. Democratic U.S. Representative Susan Wild, who won Stawnyczyj's district by less than 5,000 votes in 2022, said that courting the Ukrainian-American vote would be crucial.
WASHINGTON, May 19 (Reuters) - A second meeting on Friday between White House and Republican congressional negotiators on raising the federal government's $31.4 trillion debt ceiling broke up with no progress cited by either side and no additional meeting set. Senior White House adviser Steve Ricchetti left the meeting room telling reporters that he was "not assessing" the talks. A meeting earlier on Friday ended abruptly with McCarthy telling reporters there had not been any "movement" from the White House toward Republican demands. Biden and McCarthy spent most of the year in an impasse with the White House insisting on a "clean" increase in the debt ceiling without conditions. They agreed to two-way talks, with the White House represented by Shalanda Young, director of the Office of Management and Budget, and Ricchetti.
A White House official confirmed the talks were resuming. "We've got to get movement from the White House and we don't have any movement yet," McCarthy told reporters during the pause in talks. A White House official said: "There are real differences between the parties on budget issues and talks will be difficult. Biden and McCarthy spent most of the year in an impasse with the White House insisting on a "clean" increase in the debt ceiling without conditions. A White House official said a deal remained possible.
Morning bid: Biden, Republicans set for debt ceiling face-off
  + stars: | 2023-05-16 | by ( ) www.reuters.com   time to read: +2 min
May 16 (Reuters) - A look at the day ahead in U.S. and global markets from Samuel Indyk. President Joe Biden and senior Republicans, including House Speaker Kevin McCarthy, are to sit down on Tuesday in an attempt to thrash out a deal to raise the debt limit and avoid a catastrophic default. That relative calm has been reflected in the latest Bank of America fund manager survey for May. Equity allocations rose to a five-month high, while a vast majority (71%) expect the U.S. to agree on a deal to raise the debt ceiling before the so-called "X-date". Away from the debt ceiling and the Federal Reserve's data dependency will be tested with the latest retail sales and industrial production figures.
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.
WASHINGTON, May 8 (Reuters) - The United States plans as soon as Tuesday to announce a new $1.2 billion military aid package for Ukraine that will include air defense systems, ammunition and funds for training, a U.S. official said. Ukraine will receive 155-mm Howitzer ammunition, counter-drone ammunition, and funding for satellite imagery as well as various types of training, said the official. The package is paid from Ukraine Security Assistance Initiative (USAI) funding which allows President Joe Biden's administration to buy weapons from industry rather than pull from U.S. weapons stocks. However, members of both parties insist they support continued aid for Ukraine including top Republicans House Speaker Kevin McCarthy and Mitch McConnell, the top Republican in the Senate. Reporting by Mike Stone; Editing by Michael PerryOur Standards: The Thomson Reuters Trust Principles.
Morning Bid: Showdown on the ceiling
  + stars: | 2023-05-09 | by ( ) www.reuters.com   time to read: +5 min
With world markets still at an impasse on the extent of the economic slowdown and chance of recession, the U.S. debt ceiling impasse remains unresolved - and Tuesday's showdown at the White House is one of the few opportunities left to resolve it. Biden meets Republican House of Representatives Speaker Kevin McCarthy for the first time since February. There are only six days this month when the House and the Senate are in session when Biden is in Washington. Longer-term Treasury yields remain under wraps, however, with 2-year yields hovering just under 4%. DEBT CEILINGBeyond the debt ceiling row, the picture of the wider economy remains equivocal.
The dollar remained relatively weaker against most of its major peers, even as the dollar index rose 0.059% and the euro fell 0.15% to $1.1002. Friday's robust U.S. payrolls report prompted investors to dial back their expectations for the timing and size of the Fed's first interest rate cut. The two-year Treasury yield, which typically moves in step with interest rate expectations, rose a touch above 4.0%. The dollar rose 0.18% against the yen. Bullion regained ground after a sharp retreat in the previous session, ahead of the inflation data that could shed light on the outlook for U.S. interest rates.
In Europe, the broad pan-regional STOXX 600 index (.STOXX) rose 0.34% on expectations non-U.S. stocks will outperform in the months ahead. Sterling , which has gained 4.4% against the dollar this year, earlier hit a 12-month high of 1.2668 ahead of an expected Bank of England rate increase on Thursday. The dollar rose 0.01% against the yen. "The survey should point to further broad-based tightening in bank lending standards," said Bruce Kasman, head of economic research at JPMorgan. Bullion regained ground after a sharp retreat in the previous session, ahead of the inflation data that could shed light on the outlook for U.S. interest rates.
Analysts do not expect an immediate deal to avert a historic default, which the Treasury Department has warned could come as soon as June 1. Forecasters warn a default would likely send the U.S. economy into deep recession with soaring unemployment. Outside observers including people who have participated in past fiscal negotiations and business lobby groups have laid out a range of potential compromises largely revolving around extending the debt ceiling past the November 2024 presidential elections while freezing spending. But it is not catastrophic," Democratic Senator Chris Coons said, referring to past shutdowns, adding, "default would be catastrophic." Worries about the standoff have already started to weigh on financial markets, but a default would have a far more immediate effect on average Americans.
We Hit the Debt Limit. What Happens Now?
  + stars: | 2023-05-08 | by ( Jeanna Smialek | Ashley Wu | ) www.nytimes.com   time to read: +12 min
Pass a timely deal Fail to reach an agreement Raise the debt limit Default on debt Congress can ... The debt limit was raised this way three times during the Trump administration and dozens of times during past presidencies. But House Republicans have made clear that they want stipulations in the form of spending cuts attached to this next debt limit increase. Pass a timely deal Fail to reach an agreement Potential market volatility Temporary suspension Delay the debate Raise the debt limit Default on debt Congress can ... DefaultRaise the debt limit Default on debt Potential loss of trust in U.S. bonds Default on debt Potential loss of trust in U.S. bonds Raise the debt limitMany on Wall Street think that the worst-case scenario would play out if the government missed an interest payment, leaving it in default on its debt.
PoliticsBiden, McCarthy aim to break debt ceiling standoffPostedPresident Joe Biden and top Republicans and Democrats from Congress are set to sit down Tuesday to try to resolve a three-month standoff over the $31.4 trillion U.S. debt ceiling and avoid a crippling default before the end of May. Tamara Lindstrom produced this report.
"I've not gotten there yet," Biden said in an interview with MSNBC when asked about the possibility of invoking the amendment. If Congress fails to act, some legal experts say Biden has another option to avert a crisis: Invoke the 14th Amendment to the U.S. Constitution to ensure the United States can continue to pay its bills. Section Four of the amendment, adopted after the 1861-1865 Civil War, states that the "validity of the public debt of the United States ... shall not be questioned." Some experts have suggested that Biden could invoke this amendment to raise the debt ceiling on his own if Congress does not act. Biden and top Republicans and Democrats from the U.S. Congress will sit down on Tuesday next week to try to end the three-month standoff over the federal debt ceiling and avoid a crippling default before the end of the month.
WASHINGTON, May 2 (Reuters) - The United States plans to announce as soon as Wednesday a new $300 million military aid package for Ukraine that will for the first time include a short-range air-launched rocket, two U.S. officials said. The Hydra 70 is an air-launched unguided rocket made by General Dynamics (GD.N). The rockets could help Ukraine weaken Russian ground positions and provide advancing Ukrainian ground forces with air support as Kyiv plans a spring offensive. The security assistance package would be the 37th approved by the United States for Ukraine since the Russian invasion in February 2022, for a total of nearly $36 billion. However, members of both parties insist they support continued aid for Ukraine including top Republicans House Speaker Kevin McCarthy and Mitch McConnell, the top Republican in the Senate.
A battle over a threatened price increase has exposed growing tensions between top Republican Party officials and the company with a virtual monopoly on processing Republican campaign contributions online. Party leaders have risen up in opposition to the plan to raise prices, which would siphon millions of dollars from G.O.P. campaigns less than 20 months after the company, WinRed, had said its finances were robust enough to forego an extra fee on every transaction. Mr. Lansing’s company, a private for-profit firm responsible for processing almost all online Republican political donations, charges 3.94 percent of almost every donation made online. But he said it wasn’t enough, citing an unforeseen slowdown in online G.O.P.
West Virginia Governor Jim Justice (R) and US Senator Joe Manchin (L), Democrat of West Virginia, attend a roundtable discussion on the opioid epidemic with local and state officials at the Cabell-Huntington Health Department in Huntington, West Virginia, July 8, 2019. West Virginia's Republican governor, Jim Justice, filed official paperwork to kick off a 2024 campaign for the U.S. Senate seat currently held by incumbent Democratic Sen. Joe Manchin. If Manchin decides not to run for a third term, Democrats are widely expected to lose the seat to whichever Republican nominee emerges from West Virginia's Senate primary. A Trump campaign spokesman did not immediately respond to a request for comment. With his seat under threat, Manchin has appeared increasingly critical of President Joe Biden and his fellow Democrats.
McCarthy told reporters in the U.S. Capitol. Biden said Congress must raise the debt ceiling without conditions, as it did three times under Republican President Donald Trump. It could be difficult for Congress to raise the debt ceiling before then if House Republicans are unable to unite behind a proposal, analysts say. Treasury Secretary Janet Yellen warned on Tuesday that a failure to raise the debt ceiling would trigger a "financial catastrophe" that would sharply raise the cost of borrowing money. Manhattan Institute senior fellow Brian Riedl gives House Republicans a 50-50 chance of passing the legislation this week.
“I hope the Republican Party can muster the courage to oppose late-term abortion like we have done in the past. But after the midterms produced a slimmer-than-expected majority, there now appears to be little appetite inside the House GOP for such a bill. Troy Nehls, a Republican from Texas, told CNN: “it’s up to the states,” when asked about a national ban. The National Right to Life Committee said it is in regular communication with House Republican leadership about possible legislative efforts and educational needs on the issue. “What we’re working on right now is primarily reacquainting members with the abortion issue after the Dobbs decision.
Their focus on the idea reflects how, after toiling unsuccessfully for months to unite their rank and file around a fiscal blueprint, G.O.P. leaders have become acutely aware that they have few options for doing so that could actually pass the House. On Wednesday, Speaker Kevin McCarthy highlighted the measure when he finally unveiled House Republicans’ proposal to raise the debt limit for one year in exchange for a series of spending cuts and policy changes. “The American people are tired of politicians who use Covid as an excuse for more extreme inflationary spending,” Mr. McCarthy said in a speech on the House floor. “If the money was authorized to fight the pandemic, what was not spent during the pandemic should not be spent after the pandemic is over.”
Airman Charged in Leak of Classified Documents
  + stars: | 2023-04-14 | by ( Michael Crowley | ) www.nytimes.com   time to read: +2 min
In later remarks to reporters, Mr. Biden added that he had instructed officials to get “to the root of why he had access in the first place.”The Pentagon has provided little information about what security reviews might be underway. While Mr. Biden’s remarks were directed widely to the military and intelligence agencies, officials said that based on what is known so far, the Defense Department will make the initial moves to tighten security. Officials described a reluctance to limit intelligence shared with the Pentagon and said it is more likely that the first steps of any security review will focus on improving how the military gives access to the material. Top Republicans on Friday praised the arrest of the airman even as Speaker Kevin McCarthy accused the Biden administration of having been “asleep at the switch” on protecting the nation’s secrets. But Representative Marjorie Taylor Greene of Georgia went further, calling Airman Teixeira a “hero” who had exposed government secrets the administration has tried to conceal and who was being unfairly targeted for his right-wing views.
The NY judge handling Donald Trump's criminal case made a $15 donation to President Joe Biden's campaign in 2020. Legal experts told Insider that it likely won't get the judge thrown off the case. But it will "feed the Trump PR beast" and doesn't bode well for public perception, the experts said. Legal experts told Insider on Friday that the political donations likely won't get New York Supreme Court Justice Juan Merchan thrown off of Trump's case, but that it will "feed the Trump PR beast" and doesn't bode well for public perception. "The Trump people will pounce on that"Former President Donald Trump appears in court for his arraignment, on April 4, 2023 in New York.
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