Key takeaways:
- The US has officially hit its $34.1 trillion debt ceiling, and the government has begun “extraordinary measures” to continue paying bills.
- House Republicans have threatened to hold President Biden’s administration hostage over the debt limit, demanding spending cuts targeting programs like Social Security and Medicare.
- The negotiations between the White House and House Republicans will be closely watched, as the outcome could have a significant impact on the financial security of American households.
The United States has officially hit its $34.1 trillion debt ceiling, and the government has begun what it calls “extraordinary measures” to continue paying bills. House Speaker Kevin McCarthy has accepted an invitation from President Biden to meet and discuss a solution to addressing the debt ceiling.
Senate Minority Leader Mitch McConnell (R-Ky.) said Thursday that the U.S. “never has and never will” default on its debt. The White House has previously said there would be no negotiations with Republicans on the debt ceiling, and that there must be a clean increase to the debt limit, without conditions attached.
House Republicans, however, have threatened to hold President Joe Biden’s administration hostage over the debt limit, demanding spending cuts targeting programs like Social Security and Medicare. White House press secretary Karine Jean-Pierre said in a briefing Friday that the president “is looking forward to meeting with Speaker McCarthy” about the debt ceiling.
The impact of hitting the debt limit on American households is yet to be seen. It is likely that the debt ceiling will be raised, but it remains to be seen what conditions will be attached to the increase. The negotiations between the White House and House Republicans will be closely watched, as the outcome could have a significant impact on the financial security of American households.
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