List of All Articles with Tag 'politics'

The debt ceiling snafu, which has the potential to wreck the US economy, is a civics lesson in the bizarrely inefficient way the American government spends your money.

The clock is ticking for President Joe Biden and House Speaker Kevin McCarthy to come to agreement to avoid a first-ever default on the nation's debt. And although there are some positive signs suggesting they're closer to a consensus, there is still no deal.

President Joe Biden on Monday said he was “optimistic” about the chances of finding an agreement with the Republican-led House of Representatives that would avoid a catastrophic default on America’s sovereign debt. Speaking at the outset of a crucial meeting with House Speaker Kevin McCarthy, Mr Biden said the source of his optimism was a shared agreement between the two men that a debt default is “off the table”. Mr Biden also said the consequences that would arise should the US fail to meet its’ outstanding debt obligations would be “a kick in the ... economic well-being” for the American people. The negotiating session between the president and House speaker comes with just ten days remaining before the US Treasury is set to lose the ability to pay its’ bills by issuing new bonds. In a letter to Congress, Treasury Secretary Janet Yellen said on Monday that “it is highly likely” that the Treasury would run out of operating funds in the event that Congress does not raise the department’s statutory debt limit. A default on America’s sovereign debt would be a financial catastrophe both for Americans and people around the world who rely on US financial stability. Mr Biden said he and Mr McCarthy “talked about the need for bipartisan agreement” and stressed that he was “optimistic” that he and Mr McCarthy were “going to make some progress” during the Monday evening session. For his part, the House Speaker said he and Mr Biden had a “very productive” conversation during a phone call held on Sunday while Mr Biden was returning to Washington from the G7 summit aboard Air Force One. Earlier in the day, Mr McCarthy told reporters at the Capitol that “decisions have to start being made” on spending for the next fiscal year since “we’re 10 days out” from the debt ceiling deadline. “We have to spend less next year than we spent this year,” he said before pointing to the House’s proposal for spending cuts as the “framework” for a deal. “I’m hopeful,” he added. Read More Watch live: Biden and McCarthy meet to discuss US debt ceiling Who is Tim Scott? 5 things to know about the newest 2024 GOP presidential candidate A timeline of Donald Trump’s rivalry with Ron DeSantis

Sen. Tim Scott announced he's running for the Republican nomination for president on Monday, setting up a challenge to former President Donald Trump, the current frontrunner.

Treasury Secretary Janet Yellen reinforced her warning to Congress that it has only a little time left to address the debt ceiling before the nation defaults on its obligations.

By Michele Kambas and Renee Maltezou ATHENS A resounding defeat of radical parties in Greece's election on Sunday

House Republicans are insisting on spending cuts before they will agree to raise the nation's debt ceiling past $31 trillion.

The countdown is on, the stakes are high -- and there is still no debt limit deal.

America is heading close to the brink of a self-imposed economic disaster with the Republican-led House refusing to pay the country's debts unless President Joe Biden agrees on cuts to current and future spending and new curbs on social programs.

President Joe Biden spoke with House Speaker Kevin McCarthy on Sunday and agreed they would meet on Monday afternoon to try to break the stalemate over legislation to raise the national debt limit. A call took place, according to a White House readout, which gave no indication to the tone of the discussion. Mr McCarthy characterised the call as “productive” in a comment to reporters. A day earlier, the Speaker said negotiations had taken a step backward following Mr Biden’s remarks that he believed the 14th Amendment could be used to circumvent Congress on the issue. “I don’t think we’re going to be able to move forward until the president can get back into the country,” Mr McCarthy said on Saturday. “Just from the last day to today they’ve moved backwards. They actually want to spend more money than we spend this year.” Mr Biden’s call with Mr McCarthy took place while the president was on Air Force One bound for the US on Sunday. He had cut short his attendance at the G7 summit in Japan in order to lead negotiations with Republicans on the issue. During an appearance on Sunday show, Meet the Press, Treasury Secretary Janet Yellen once again warned that the federal government is projected to run out of money on or about 1 June. Should the US be unable to pay its outstanding obligations to debt holders, or even raise questions about its ability to do so, it risks a downgrade of the US’s credit rating which would affect interest rates on future loans. The last official downgrading of the United States’s credit rating occurred in 2011, when Standard and Poor’s dropped the US’s rating from “AAA” to “AA+”. “I indicated in my last letter to Congress that we expect to be unable to pay all of our bills in early June and possibly as soon as June 1. And I will continue to update Congress, but I certainly haven’t changed my assessment. So I think that that’s a hard deadline,” Sec. Yellen said. She added that the possibilty was “quite low” that the US could extend its ability to pay its obligations through 15 June - referencing remarks made by Republicans who suggested Treasury could maneuver past a 1 June deadline without hitting a default. ”[I]t’s hard to be absolutely certain about this, but my assessment is that the odds of reaching June 15th, while being able to pay all of our bills, is quite low,” said Ms Yellen. “[M]y assumption is that if the debt ceiling isn’t raised, there will be hard choices to make about what bills go unpaid.” Mr Biden has been roundly accused by conservatives of refusing to negotiate cuts to federal spending ahead of the debt ceiling deadline. The White House, meanwhile, has blamed Republicans for putting the country’s credit rating at risk. Earlier on Sunday, the president spoke at a press conference and did not indicate that he was completely opposed to reaching a compromise with Republicans on spending levels, though he warned that the GOP must be willing to move in his direction as well. “It’s time for Republicans to accept that there’s no bipartisan deal to be made solely — solely — on their partisan terms,” said Mr Biden. “They have to move as well.” Read More ‘Putin will not break our resolve,’ Joe Biden tells G7 Top House negotiator on debt limit says it's time to 'press pause' as talks come to standstill Biden meeting with Indo-Pacific leaders at G7 summit while confronting stalemate over US debt limit Debt ceiling showdown: Biden and congressional leaders to meet as McCarthy pushes for faster deal Most say pair debt limit increase with deficit cuts, but few following debate closely: AP-NORC poll G7 finance leaders promise support for Ukraine, vow to enforce sanctions against Russia

The president flies home from the G7 summit amid hopes of a deal with top Republican Kevin McCarthy.

President Joe Biden has asked to speak with House Speaker Kevin McCarthy once his meetings conclude in Japan, in hopes of helping to put negotiations to raise the US debt ceiling -- which have appeared mostly stalled since Friday -- back on track.