A timeline of events related to the Debt Ceiling crisis: The United States is facing yet another debt ceiling crisis, with both Democrats and Republicans at a standstill in negotiations.
Introduced in House (05/29/2023) | Fiscal Responsibility Act of 2023
This bill increases the federal debt limit, establishes new discretionary spending limits, rescinds unobligated funds, and expands work requirements for federal programs.
Specifically, the bill suspends the federal debt limit through January 1, 2025, and increases the limit on January 2, 2025, to accommodate the obligations issued during the suspension period.
In addition, the bill establishes new discretionary spending limits for FY2024 and FY2025 that are enforced with sequestration (i.e., automatic spending cuts). It also changes the limits to 1% below the FY2023 base funding levels if a continuing resolution is in effect on or after January 1, 2024, or on or after January 1, 2025, because all 12 regular appropriations bills were not enacted by the end of the prior year.
The bill also includes provisions that
rescind certain unobligated funds that were provided to address COVID-19 and to the Internal Revenue Service;
provide funding for the Department of Veterans Affairs Cost of War Toxic Exposure Fund;
provide funding for the Department of Commerce Nonrecurring Expenses Fund;
provide statutory authority through 2024 for the requirement for agencies that propose certain administrative actions that will increase direct spending to also propose at least one administrative action that will decrease direct spending by at least the same amount (commonly known as administrative pay-as-you-go rules);
terminate the suspension of federal student loan payments;
expand the work requirements for the Supplemental Nutrition Assistance Program (SNAP) and the Temporary Assistance for Needy Families (TANF) program; and
expedite the permitting process for certain energy projects.
House.gov: Roll Call 243 | Bill Number: H. R. 3746
AYES: 314
NOES: 117
Present: 0
Not Voting: 4
Senate.gov: Roll Call Vote 118th Congress - 1st Session (On Passage of the Bill (H.R. 3746)
YEAs: 63
NAYs: 36
Not Voting: 1
☑️ #154 May 31, 2023
McCarthy: This debt is too large, and we can't solve the problem just looking at 11%»
@SpeakerMcCarthy: Speaker McCarthy on Largest-ever Deficit Reduction Bill: I Want to Be a Part of History
We’re going to pass the largest cut in American history. It's just a small step putting us on the right track. After today, I'm going to put a commission together to look at the entire budget. This debt is too large, and we can't solve the problem just looking at 11%. But I'm going to make it a bipartisan commission that we can be very serious about looking long term to solve this problem once and for all.
We shouldn't have to go to a debt ceiling where a president ignores us for 97 days. We make good policies in here with work requirements. It’s going to change people's lives. People are going to get a job because of this. Roads are going to be built because of NEPA reform faster. It's going to save us money in the long run.
Does it matter to you, though, that you won't have the entire conference behind you? No, it matters. It's going to become law. If I'm a member of Congress, I wouldn't want history to pass me by. But I could do the biggest cut and I could do work reforms for welfare. And I can see that we can reform NEPA for the first time in 40 years.
So you're cutting the red tape to build things that make America competitive. Everybody has a right to their own opinion. But on history, I'd want to be here with this bill today.
@CNBCTelevision: Rep. Patrick McHenry on debt ceiling deal: We have the votes to pass this today
House Financial Services Committee Chairman Rep. Patrick McHenry (R-N.C.) joins 'Squawk Box' to discuss the latest on debt ceiling negotiations, and whether the tentative deal will be able to pass both the House and the Senate to avert a U.S. debt default.
Majority Leader Chuck Schumer Dear Colleague On An Agreement To Avoid Default»
democrats.senate.gov: Today, Senate Majority Leader Chuck Schumer (D-NY) sent the following Dear Colleague letter inviting Democratic Senators to join a 6:30 PM briefing call with White House staff to discuss the deal to avert economic catastrophe, protect American families, and avoid default.
Biden: Earlier this evening, Speaker McCarthy and I reached a budget agreement in principle»
wh.gov: Statement from President Joe Biden on Bipartisan Budget Agreement in Principle
[Transcription] Earlier this evening, Speaker McCarthy and I reached a budget agreement in principle.
It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone. And, the agreement protects my and Congressional Democrats’ key priorities and legislative accomplishments.
The agreement represents a compromise, which means not everyone gets what they want. That’s the responsibility of governing.
And, this agreement is good news for the American people, because it prevents what could have been a catastrophic default and would have led to an economic recession, retirement accounts devastated, and millions of jobs lost.
Over the next day, our negotiating teams will finalize legislative text and the agreement will go to the United States House and Senate. I strongly urge both chambers to pass the agreement right away.
McConnell Applauds Bipartisan Agreement to Rein in Reckless Spending »
mcconnell.senate.gov: [Transcription] LOUISVILLE, KY. – U.S. Senate Republican Leader Mitch McConnell (R-KY) issued the following statement:
“The United States of America will not default on its debt. Today’s agreement makes urgent progress toward preserving our nation’s full faith and credit and a much-needed step toward getting its financial house in order. I am especially grateful to Speaker McCarthy and House Republicans for their work to ensure that a debt limit increase comes with serious steps to rein in Washington Democrats’ addiction to reckless spending.
“The agreement the Speaker reached with President Biden sets meaningful limits on the Administration’s spending agenda. At the same time, it secures permitting reforms and reinforces the link between federal assistance and work.
“The Senate must act swiftly and pass this agreement without unnecessary delay.”
☑️ #148 May 28, 2023
U.S. Chamber Commends Deal to Prevent Debt Limit Crisis »
uschamber.com: Today, U.S. Chamber of Commerce President and CEO Suzanne P. Clark released a statement regarding the President and Congressional leaders reaching an agreement on preventing a default on the national debt.
"While we are one important step closer to averting an economic crisis, the United States will continue to confront debt limit drama in the future if our leaders don’t find sensible ways to reduce federal spending and lower the national debt,"
"Federal leaders should use this opportunity to limit out-of-control spending to avoid simply passing on the issue to future generations."
Some GOP lawmakers reportedly worried about debt ceiling hike
RepBobGood: I am hearing the “deal” is for a $4 trillion increase in the debt limit. IF that is true, I don’t need to hear anything else. No one claiming to be a conservative could justify a YES vote.
@BernardKerik: Is it true that @SpeakerMcCarthy has supported preserving 70 of the $80 billion in new funding for the IRS, after hearing about all of the corruption in the IRS just last week? Say it’s not so Mr. Speaker!
@RepDanBishop: January 1, 2025 debt ceiling deadline. Smack dab in lame duck Congress (and potentially lame duck Biden admin). That’s gonna be an disasterous spending blowout.
☑️ #146 May 28, 2023
Speaker McCarthy Makes an Announcement about Debt Limit Negotiations »
@SpeakerMcCarthy: I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we've come to an agreement in principle that is worthy of the American people. I'll deliver a statement at 9:10pm ET. Watch here:
Video
Republicans are poised to deliver big, consequential change in Washington. Soon, we will vote for a responsible debt limit agreement that stops Democrats' reckless spending, claws back unspent COVID funds, blocks Biden's new tax schemes, and much, much more.
McCarthy: House to vote on debt ceiling bill on Wednesday
"I expect to finish the writing of the bill, checking with the White House and speaking to the president again, tomorrow afternoon and then posting the text of it tomorrow,"
@SpeakerMcCarthy: Speaker Kevin McCarthy Calls for Transformational Spending Reform
We can't get those 97 days back that President Biden wasted by refusing to negotiate. But I'm not just fighting for an agreement—I'm fighting for transformational reform that's worthy of the American people.
☑️ #144 May 26, 2023
Graves: The parties negotiating the debt ceiling deal are still divided on the work requirements point »
@markets: Rep. Graves: Hell No, We Won't Drop Work Requirements
House Republican negotiator Garret Graves says Republicans are holding firm on tougher work requirements for social welfare programs as those measures remain a major sticking point in ongoing debt limit negotiations.
☑️ #143 May 26, 2023
White House: GOP threatening to trigger unprecedented recession »
@thehill: “House Republicans are threatening to trigger an unprecedented recession and cost the American people over 8 million jobs unless they can take food out of the mouths of hungry Americans,” deputy press Secretary Andrew Bates (@AndrewJBates46) said.
Secretary of the Treasury Janet L. Yellen Sends Letter to Congressional Leadership on the Debt Limit»
home.treasury.gov: [Transcription] WASHINGTON - Today, U.S. Secretary of the Treasury Janet L. Yellen sent a letter to all members of Congressional leadership regarding the debt limit.
The Honorable Kevin McCarthy Speaker U.S. House of Representatives Washington, DC 20515
Dear Mr. Speaker:
I am writing to follow up on my previous letters regarding the debt limit and to provide additional information regarding the Treasury Department’s ability to continue to finance the operations of the federal government. Since January, I have highlighted to you the risk that Treasury would be unable to satisfy all of our obligations by early June if Congress did not raise or suspend the debt limit before that time. In my letters, I also noted that I would continue to update Congress as more information became available. Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government’s obligations if Congress has not raised or suspended the debt limit by June 5.
We will make more than $130 billion of scheduled payments in the first two days of June, including payments to veterans and Social Security and Medicare recipients. These payments will leave Treasury with an extremely low level of resources. During the week of June 5, Treasury is scheduled to make an estimated $92 billion of payments and transfers, including a regularly scheduled quarterly adjustment that would result in an investment in the Social Security and Medicare trust funds of roughly $36 billion. Therefore, our projected resources would be inadequate to satisfy all of these obligations.
Yesterday we used an additional extraordinary measure that Treasury has employed in a number of past debt limit episodes: a swap of approximately $2 billion of Treasury securities between the Civil Service Retirement and Disability Fund and the Federal Financing Bank. While this measure has not been used since 2015 due to its limited size, the extremely low level of remaining resources demands that I exhaust all available extraordinary measures to avoid being unable to meet all of the government’s commitments.
We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States. In fact, we have already seen Treasury’s borrowing costs increase substantially for securities maturing in early June. If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests.
I continue to urge Congress to protect the full faith and credit of the United States by acting as soon as possible.
Adeyemo: 14th Amendment won't be used to raise debt limit »
edition.cnn.com: [Transcription] [Excerpts] WashingtonCNN — Invoking the 14th Amendment to lift the borrowing cap on the US debt ceiling as a way to work around slow-moving negotiations is not an option, Deputy Treasury Secretary Wally Adeyemo told CNN Friday, the administration’s most definitive response yet to an unlikely option demanded by some progressives.
“The question was whether the United States would use the 14th Amendment and I think the president and (Treasury Secretary Janet Yellen) have been very clear that that will not solve our problems now. So, yes, that is a no,”
'Real-world impacts' of debt stalemate will only get worse as we near deadline, says Treasury »
@msnbc: Deputy Treasury Secretary Wally Adeyemo joins Morning Joe to discuss the ongoing debt negotiations and what would happen if the country defaulted.
@SpeakerMcCarthy: Do you have an extra $800 lying around? That's how much more you owe as your share of the national debt since January 12th—when I first called on President Biden to negotiate. His delay has real consequences. His default would be even worse.
☑️ #137 May 26, 2023
The only ones that have offered a sensible solution »
@HouseGOP: House Republicans are the only ones that have offered a sensible solution to our nation’s debt crisis that limits Washington’s irresponsible spending, saves taxpayer dollars, and grows our economy.
@SquawkCNBC: Negotiators are moving closer to a deal to cap Federal spending for two years in exchange for lifting the debt limit. @KaylaTausche has the latest on the #DebtCeilingShowdown:
economic_ma: #MarkZandi: The Treasury may run out of the cash it needs to pay all of the government's bill on June 1, but it almost surely will by June 8. #DebtLimit#DebtCeiling
DBRS Morningstar Places United States Ratings Under Review With Negative Implications»
dbrsmorningstar.com: [Transcription] [Excerpts] DBRS, Inc. (DBRS Morningstar) placed the United States of America’s Long-Term Foreign and Local Currency – Issuer Ratings of AAA Under Review with Negative Implications. In addition, DBRS Morningstar placed the United States of America’s Short-Term Foreign and Local Currency – Issuer Ratings of R-1 (high) Under Review with Negative Implications.
Even if Congress ends up increasing the debt ceiling prior to the X-date, the prospect of repeated debt ceiling standoffs in a polarized political environment may lead DBRS Morningstar to judge that U.S. credit risk has increased to a level that is no longer consistent with a AAA rating.
WH: Talks with GOP are about budget, not default »
whitehouse.gov: [Transcription] [Excerpts] Press Briefing by Press Secretary Karine Jean-Pierre
James S. Brady Press Briefing Room
1:13 P.M. EDT MS. JEAN-PIERRE: Hi, everybody. Q Hi! MS. JEAN-PIERRE: Good afternoon. Two things for you at the top. I want to provide you with a brief update on where things stand with ongoing budget negotiations. The President’s negotiation — negotiating team has had productive discussions with the Speaker’s team. And those discussions continue. You’ve heard all the congressional leaders make it clear that default is not an option. The President has said that, the Speaker has said that, and we want the American people to understand that as well. Preventing default is not a matter of debate. It’s basically respons- — the responsibility of Congress. What is up for debate, though, is the budget. And that’s what these discussions are about: two very different fiscal visions for our country and our economy.
Speaker McCarthy Explains How We Got Where We Are on the Debt »
@SpeakerMcCarthy: The federal government is collecting more money than at any time in history. But when the Democrats controlled everything over the last two years, they spent way more than ever before. That's why we have to tackle America's debt crisis now—before it's too late.
Rapidly pass COVID+IRS rescissions to push debt ceiling thru June.
☑️ #128 May 25, 2023
U.S. Treasury: Fitch report proves debt ceiling must be lifted »
@davidgura: U.S. Treasury Department Spokesperson @adamslily responds to tonight’s ratings action from Fitch:
"As Secretary Yellen has warned for months, brinkmanship over the debt limit does serious harm to businesses and American families, raises short-term borrowing costs for taxpayers, and threatens the credit rating of the United States. Tonight's warning underscores the need for swift bipartisan action by Congress to raise or suspend the debt limit and avoid a manufactured crisis for our economy."
Fitch Places United States' 'AAA' on Rating Watch Negative »
fitchratings.com: [Transcription] [Summarizer] Fitch Ratings - London - 24 May 2023: Fitch Ratings has placed the United States' 'AAA' Long-Term Foreign-Currency Issuer Default Rating (IDR) on Rating Watch Negative.
A full list of rating actions follows at the end of this rating action commentary.
KEY RATING DRIVERS
Debt Ceiling Brinkmanship
Debt Limit Reached
X-Date Approaching: The failure to reach a deal to raise or suspend the debt limit by the x-date would be a negative signal of the broader governance and willingness of the U.S. to honor its obligations in a timely fashion, which would be unlikely to be consistent with a 'AAA' rating, in Fitch's view. Prioritization of debt securities over other due payments after the x-date would avoid a default. Similarly, avoiding default by non-conventional means such as minting a trillion-dollar coin or invoking the 14th amendment is unlikely to be consistent with a 'AAA' rating and could also be subject to legal challenges.
House Dems back petition to force debt limit increase »
@WhipKClark: All 213 @HouseDemocrats have signed the discharge petition. 5 Republicans could end this right now. What’s it going to be: MAGA politics or everyday Americans?
@SpeakerMcCarthy: I never give up. And I will never give up fighting for you, the American people.
McCarthy underlined that Republicans do not want the default to happen, but noted that the GOP does not want to raise taxes. [Outlet media]
President Biden has 8 days left to avoid becoming the first president in history to default on the debt. [Tweet]
President Biden ignored this crisis for months—slow-walking the United States into default. No household in America could work like this, and we should expect better from our government too. That's why Republicans acted responsibly and voted to raise the debt limit a month ago. [Tweet]
☑️ #123 May 24, 2023
Yellen to update Congress on potential default deadline »
@WSJLive: Too big to fail? At #wsjceocouncil U.S. Treasury Secretary Yellen provided her thoughts on the consolidation occurring in banking and stressed that a diverse banking sector is important.
Speaking at The Wall Street Journal CEO Council, Yellen said that she will be notifying Congress about a more precise date when the Treasury Department will run out of resources.
Yellen Says Treasury isn’t getting ready for potential default. [WSJ]
She clarified that her department is not involved in planning for the consequences of a default. [Sources]
“We are committed to not having missed payments,” [Tweet]
☑️ #122 May 23, 2023
A simple way for the Democrats to avoid default is to pass the Limit, Save, Grow Act in the Senate »
@SpeakerMCarthy: A simple way for the Democrats to avoid default is to pass the Limit, Save, Grow Act in the Senate. With just 9 days left to go, Republicans remain the only ones in Washington who have actually done anything to lift the debt limit and avoid default.
☑️ #121 May 23, 2023
White House urgently working on debt deal, GOP statement 'ridiculous' »
@WhiteHouse: Press Briefing by Press Secretary Karine Jean-Pierre
☑️ #120 May 23, 2023
Democrats Repeatedly Say They Won’t Negotiate Over the Debt Ceiling »
McCarthy wants debt ceiling talks with Biden until deal done»
@SpeakerMcCarthy: Speaker McCarthy's Press Conference Following Meeting at White House
President Biden and I just had a productive meeting in our negotiation to responsibly raise the debt limit. It should have happened months ago, but there is a path for him to avoid defaulting on the debt.
☑️ #118 May 22, 2023
The 14th Amendment Does Not Give Biden The Authority To Raise The Debt Ceiling, It Would Be A Constitutional & Economic Crisis»
gop.gov: [Transcription] [Excerpts] President Biden is now threatening to use the 14th Amendment to raise the debt ceiling after wasting over 100 days refusing to sit down and negotiate with Speaker McCarthy. MAKE NO MISTAKE: The 14th Amendment grants the President no authority. Any attempt by the President to use the 14th Amendment to raise the debt ceiling would create a Constitutional and economic crisis. “This would be a Constitutional crisis,” Biden’s Secretary of the Treasury, Janet Yellen, said about the possibility of Biden using the 14th Amendment to raise the debt ceiling during a recent interview. Yellen went on to add that “it's legally questionable whether or not that's a viable strategy” regarding the use of the 14th Amendment.
@SpeakerMcCarthy: Let's remember how we got here—10 days out from a Biden default on the national debt. He ignored the looming crisis for months, despite my repeated calls to negotiate. Because of his inaction, he risks bumbling into the first default in American history.
I just concluded a productive meeting with Speaker McCarthy about the need to prevent default and avoid a catastrophe for our economy.
We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement.
While there are areas of disagreement, the Speaker and I, and his lead negotiators Chairman McHenry and Congressman Graves, and our staffs will continue to discuss the path forward
[Link]
☑️ #115 May 22, 2023
Secretary of the Treasury Janet L. Yellen Sends Letter to Congressional Leadership on the Debt Limit »
home.treasury.gov: [Transcription] WASHINGTON - Today, U.S. Secretary of the Treasury Janet L. Yellen sent a letter to all members of Congressional leadership regarding the debt limit.
The Honorable Kevin McCarthy Speaker U.S. House of Representatives Washington, DC 20515 Dear Mr. Speaker:
I am writing to follow up on my previous letters regarding the debt limit and to provide additional information regarding the Treasury Department’s ability to continue to finance the operations of the federal government. In my May 15 letter, I noted that our best estimate was that Treasury would be unable to continue to satisfy all of the government’s obligations by early June if Congress does not raise or suspend the debt limit before that time. In that letter, I also noted that while it is impossible to predict with certainty the exact date when Treasury will be unable to pay all the government’s bills, I would continue to update Congress as more information becomes available. With an additional week of information now available, I am writing to note that we estimate that it is highly likely that Treasury will no longer be able to satisfy all of the government’s obligations if Congress has not acted to raise or suspend the debt limit by early June, and potentially as early as June 1.
These estimates are based on currently available data, and federal receipts, outlays, and debt could vary from these estimates. I will continue to update Congress as more information becomes available.
We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States. In fact, we have already seen Treasury’s borrowing costs increase substantially for securities maturing in early June. If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests.
I continue to urge Congress to protect the full faith and credit of the United States by acting as soon as possible.
@SpeakerMcCarthy: The Democrats in Washington have been addicted to spending for the last two years. It’s time to end their addiction.
@SpeakerMcCarthy: Remember—for more than 100 days, the President and Democrats refused to negotiate a responsible debt limit increase. They treated this crisis the same as the border: Ignore it until it's a full-blown emergency. Now, with just 10 days left, Biden risks bumbling into a default.
☑️ #113 May 21, 2023
Early June is ‘a hard deadline’ for the debt limit»
@NBCNews: Treasury Secretary Janet Yellen joins Chuck Todd to discuss the “extraordinary measures” the U.S. would have to take if the debt ceiling goes unraised, the 14th amendment and the status of negotiations.
"There will be hard choices to make about what bills go unpaid" if Congress and the White House fail to reach a deal in time, Treasury Secretary Janet Yellen said on “Meet the Press."
Sources (reported citing a WH official): Biden requested to have a phone conversation with with McCarthy
//
@KyleAlexStewart:.@SpeakerMcCarthy said he had a “productive” phone call with @POTUS today.
WH staff will meet w/ the Speaker’s team at 6pm tonight ahead of McCarthy’s meeting with Biden tomorrow.
☑️ #111 May 21, 2023
Biden couldn't assure G7 that US will avoid default»
wh.gov: Remarks by President Biden in a Press Conference
THE PRESIDENT: Please have a seat. I don’t think there’s enough press here. (Laughs.)
Well, good evening, everyone. Before turning to the important work we accomplished here at the G7, I want to take a few minutes addressing the budget negotiations that I’m heading back home to — to deal with.
Before I left for this trip, I met with all four congressional leaders, and we agreed the only way to move forward was on a bipartisan agreement.
And we’ve — I’ve done my part. We put forward a proposal that cuts spending by more than a trillion dollars, and on top of the nearly $3 trillion in deficit reduction that I previously proposed through the combination of spending cuts and new revenues.
Now it’s time for the other side to move their — from their extreme positions, because much of what they’ve already proposed is simply, quite frankly, unacceptable.
⚡️
Q You speak a lot at these summits about the power of democracies to solve big problems. But I’m curious, in these meetings with world leaders, how are you explaining the possibility that American democracy could cause a global financial crisis if the debt limit is breached next month? And I’m wondering if you are offering them assurances that, whether it’s by invoking the 14th Amendment or anything else, you will take whatever steps you need to make sure that doesn’t happen.
THE PRESIDENT: First of all, it would be a very serious circumstance if we didn’t pay our debt for the first time in 230 years. That would be a serious problem.
So far, there’s been very little discussion — and they all know what’s going on — about whether or not we’re going to default on our debt. Number — no, number two.
Number three, I can’t guarantee that they wouldn’t force a default by doing something outrageous. I can’t guarantee that.
Number four, I’m looking at the 14th Amendment, as to whether or not we have the authority. I think we have the authority. The question is: Could it be done and invoked in time that it could not — would not be appealed and, as a consequence, pass the date in question and still default on the debt. That’s a question that I think is unresolved.
On Tuesday, the President appointed a senior team to negotiate with the Speaker’s team. The President and Speaker agreed that any budget agreement would need to be bipartisan. Last night in DC, the Speaker’s team put on the table an offer that was a big step back and contained a set of extreme partisan demands that could never pass both Houses of Congress. The President has over and over again put deficit reduction proposals on the table, from limits on spending to cuts to Big Pharma profits to closing tax loopholes for oil and gas. Let’s be clear: The President’s team is ready to meet any time. And, let’s be serious about what can pass in a bipartisan manner, get to the President’s desk and reduce the deficit. It is only a Republican leadership beholden to its MAGA wing — not the President or Democratic leadership — who are threatening to put our nation into default for the first time in our history unless extreme partisan demands are met.
White House: Parties still at odds on debt ceiling»
wh.gov: Press Briefing by Press Secretary Karine Jean-Pierre and National Security Advisor Jake Sullivan on the President’s Trip to Japan
National Security Advisor Jake Sullivan
Q Thanks, Jake. Has the President sought to or been asked to give any reassurances related to debt-limit negotiations that he’s continued to be engaged in? And, I guess, in your conversations, has anybody brought it up to you with any level of concern or discomfort?
MR. SULLIVAN: It is definitely a subject of interest here at the G7. You know, countries want to have a sense of how these negotiations are going to play out. And the President has expressed confidence that he believes that we can drive to an outcome where we do avoid default. And part of the reason that he’s returning home tomorrow rather than continuing with the rest of the trip is so that he can help lead the effort to bring it home.
This is not generating alarm or a kind of vibration in the room. I would just say that countries are keenly interested in what is a, you know, significant story. And the President has been able to tell them, you know, that he believes that we can get to a good result here.
Press Secretary Karine Jean-Pierre
Q Thanks, Karine. So, the last time that we got this close to a debt ceiling default, President Obama deputized his Vice President to lead the negotiations. Why doesn’t President Biden trust Vice President Harris to lead these negotiations —
MS. JEAN-PIERRE: Well —
Q — while he’s in Asia?
MS. JEAN-PIERRE: Well, I disagree with your — the premise of your question. The President does — does —
Q She’s in Los Angeles.
MS. JEAN-PIERRE: Well — well, let me —
Q She could be at the Capitol. Why isn’t she?
MS. JEAN-PIERRE: The President entrusts the Vice President, as we all know, as we have stated many times.
She — she was in the meeting that — with the congressional members that occurred very recently, right before the President left for Japan. She has been in regular conversations, as well, and has been in — in conversations with the President. He has taken her consult and listened to her advice, as he always does on many issues. This is one of many issues. And so, that has not changed.
And I think you actually said something that is incredibly important: The President has been there before. Right? He has dealt with these types of negotiations, these types of conversations before. He knows how this all works. This is not new to him.
And this is why he is optimistic. And this is why these conversations are going to continue and he’s going to stay on top of them.
Washington is sitting on $60 billion dollars in unspent COVID funds, even though the pandemic is over »
@SpeakerMcCarthy: Washington is sitting on $60 billion dollars in unspent COVID funds, even though the pandemic is over. Republicans want to claw that money back for taxpayers. Democrats are fighting us over that. That's crazy.
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Related video (5/18/23)
☑️ #107 May 20, 2023
Kevin McCarthy: Biden White House will not acknowledge this »
@FoxNews: House Speaker Kevin McCarthy joins 'The Bottom Line' to break down where negotiations stand on the debt ceiling as the default deadline nears.
☑️ #106 May 19, 2023
WH says debt ceiling deal possible as GOP walks out
[Pending confirmation] The White House stated Friday that a deal with Republicans to raise the debt ceiling was still possible.
"A responsible, bipartisan budget agreement remains possible if both sides negotiate in good faith and recognize that neither side will get everything it wants," the official told the press.
@SpeakerMcCarthy: Washington has to spend less. It's as simple as that.
☑️ #105 May 19, 2023
McCarthy on debt talks: We need movement from WH »
@markets: McCarthy Says Debt-Limit Talks Are on Pause
Debt-limit negotiations hit an impasse Friday as House Speaker Kevin McCarthy blamed the White House for resisting spending cuts, casting doubt on efforts in Washington to avert a catastrophic default. He spoke to reporters briefly in the US Capitol.
"We've got to get movement from the White House and we don't have any movement yet,"
"Yesterday I felt we were at the location where I could see the path,"
☑️ #104 May 19, 2023
GOP negotiators reportedly halt debt limit talks »
CBSNews: Debt ceiling talks break down with default deadline coming fast
Negotiations over the debt ceiling have reached a standstill as the default deadline approaches. Republican Congressman Garret Graves says the decision was made to pause discussions earlier today. It's not clear when talks will resume. CBS News congressional correspondent Nikole Killion has more.
☑️ #103 May 19, 2023
WH allegedly says 'steady progress' being made on debt issue »
@W7VOA: President Biden is told “steady progress is being made” in the bipartisan budget framework talks while he is in #Japan, according to the White House.
BoJ's Ueda: US defaulting on debt might shake markets »
piqsuite.com: BOJ's Ueda warns of market turmoil if US defaults on its debt
TOKYO (Reuters) - Bank of Japan Governor Kazuo Ueda said on Friday a U.S. debt default could trigger market turmoil, and will likely have a huge impact on the global economy.
"There's a chance it would cause turmoil in various markets ... and affect a vast array of financial transactions," Ueda told parliament, when asked by a lawmaker of the impact if Washington fails to agree on extending the U.S. debt ceiling.
"The Bank of Japan will strive to maintain market stability based on its pledge to respond flexibly with an eye on economic, price and financial developments," he said.
(Reporting by Leika Kihara; Editing by Muralikumar Anantharaman)
home.treasury.gov: READOUT: Secretary of the Treasury Janet L. Yellen's Meeting with Bank Policy Institute
[Transcription] WASHINGTON - Today, U.S. Secretary of the Treasury Janet L. Yellen met with more than two dozen CEOs and executives convened by the Bank Policy Institute (BPI) to discuss the current state of the economy and President Biden's economic agenda. Secretary Yellen reaffirmed the strength and soundness of the U.S. banking system, noting that it remains well-capitalized with strong liquidity. She noted that decisive federal action taken by regulators and the Administration in March to protect depositors helped to strengthen public confidence in the banking system and mitigate financial contagion. Secretary Yellen thanked many of the participants for their leadership and support in responding to these market developments. And she made clear that the Treasury Department continues to closely monitor conditions across the banking sector.
Secretary Yellen also discussed the urgent need for Congress to address the debt limit and underscored the real and severe consequences of default for the banking system and the domestic and global economy. She outlined how a failure to raise or suspend the debt limit would be catastrophic for the financial system, as well as American families and businesses, and underscored the Administration’s belief that the debt limit should be addressed without delay.
