Republican lawmakers want spending cuts in return for raising the debt limit, saying the budget's current path is unsustainable. ![]() Though government finances are complex, the divide is simple. In short, May 9 is when all the principal leaders are in Washington. In his statement reacting to the Yellen letter, he did not mention the White House invite, even though he has been pressing for talks with the president for weeks.īiden will be in Japan, Papua New Guinea and Australia from May 17 to May 25. McCarthy was in Jerusalem on Monday, speaking to its Knesset. capital runs on calendars - and those can be perpetual obstacles to getting stuff done. White House press secretary Karine Jean-Pierre declined on Tuesday to say how the letter might have influenced Biden's thinking.īut after the letter's release, Biden invitations to House Speaker Kevin McCarthy, R-Calif., Senate Majority Leader Chuck Schumer, D-N.Y., House Minority Leader Hakeem Jeffries, D-N.Y., and Senate Minority Leader Mitch McConnell, R-Ky., became public. "After reviewing recent federal tax receipts, our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time," Yellen wrote in a letter to lawmakers that became public late Monday. The Treasury Department has been using “extraordinary measures” since January to keep the government operating, short-term accounting tweaks to buy lawmakers time.īut Treasury Secretary Janet Yellen now says that time is running short. This means there is less of a financial cushion before the government runs out of money. Tax receipts in April were less robust than expected. ![]() WHAT CAUSED BIDEN TO SCHEDULE THE MEETING? There is still a chasm between Democrats and Republicans on what should be done. But it's just a meeting, nothing more so far. The scheduling of next Tuesday's White House meeting suggests that leaders of both parties understand the risks at hand. The damage would be financial, but the cause would be political, a breakdown between Republicans and Democrats, rather than a problem with the underlying health of the U.S. If the government can't borrow money to keep paying its bills for an extended period, there could be millions of job losses, businesses left bankrupt, crashes piling up across financial markets and lasting economic pain. If the government's legal borrowing limit of $31.4 trillion is not raised or suspended in the next few weeks, the result could be financial havoc. ![]() ![]() It’s the first concrete step toward negotiations on averting a potential economic catastrophe, but there’s a long way to go: Biden and Republicans can’t even agree on what’s up for negotiation. government default by month's end, President Joe Biden has invited the top four congressional leaders to face-to-face talks at the White House next week. WASHINGTON (AP) - Facing the risk of a an unprecedented U.S. Facing the risk of a federal government default as soon as June 1, President Joe Biden has invited the top four congressional leaders to a White House meeting on May 9 for talks. Patrick's Day gathering, in Washington, March 17, 2023. Susan Walsh/AP Show More Show Less 2 of2 FILE - President Joe Biden talks with House Speaker Kevin McCarthy, R-Calif., as he departs the Capitol following the annual St. 1 of2 White House press secretary Karine Jean-Pierre speaks during the daily briefing at the White House in Washington, Tuesday, May 2, 2023.
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