“We’ve come to an agreement,” Schumer said at the start of the session. “We hope to finish it today.”
In their agreement, the Democratic and Republican leaders They have walked away from a serious confrontation over raising the debt limit.
On Wednesday, McConnell offered to agree to a short-term extension. When Republicans prepared to block a bill suspending the debt limit until December 2022, during the presidency Joe Biden Business leaders have expressed concerns that the unprecedented federal default could disrupt government payments to millions of people and plunge the country into recession.
Senate leaders worked late into the night to finalize the details. “The Senate is moving forward,” McConnell said Thursday.
The news caused a rise Wall Street Thursday morning. The S&P 500 rose 1.3% and the Nasdaq 1.6%.
In December, there will be a sequel somehow, when Congress once again faces pressing deadlines to fund the government and raise the debt limit before the end of the year’s holiday.
The agreement will allow The debt limit is around $480 billionsaid a Senate aide familiar with the negotiations who spoke on the condition of anonymity. Which is the level needed, according to the Treasury, to reach December 3.
“I’m glad Mitch McConnell finally saw the light,” said the independent senator. Bernie Sanders. The Republicans “finally and at least did the right thing We have two months to come up with a file
Assuming the details of the emergency law are finalized, “over the next three months we will continue to make clear that we are willing to agree to pay our bills and that Republicans are not,” Democratic Senator Chris Murphy declared.
And it came as no surprise to anyone that McConnell saw it quite differently.
“This will challenge the Democrats’ excuses about the time constraints they have created and give the united democratic government plenty of time to pass laws on their own,” he said.
The October 18th is the deadline Which, according to the Treasury, will run out of government money to respond to the already huge public debt.
A challenge for the coming months
Republicans have warned since June that they will not vote for a permanent solution and have repeatedly asked Democrats to use a mechanism called “reconciliation” to agree to raising the debt ceiling alone.
Democrats refuse to use this gambit because it can only be used once a fiscal year, and they plan to use it to get through much of US President Joe Biden’s economic agenda.
The agreement elicited a tepid response from White House, which has been insisting for days that the longer-term debt ceiling should be suspended and will now have to settle for a temporary solution.
“This is a positive step forward, and it gives us Space to breathe and avoid catastrophic default “We were getting close because of Senator McConnell’s decision to play politics with our economy,” White House deputy spokeswoman Karen Jean-Pierre said at a news conference following the announcement.
But the spokeswoman stressed that the country “shouldn’t have gone to the brink of default” and blamed Republicans for their unwillingness to pass a more permanent measure.
However, the deal should not be harmful to Democrats, who will have to figure out how to play their cards in the coming weeks.
They can still avoid debt trouble if they can rearrange their ranks over the next couple of months. Specifically, her specialty The challenge is the agreement between the centrist and progressive wing of the party To find out what’s included in the legislative package for social spending, which they want to pass without Republican votes.
If they come to an agreement on this issue, they could put the debt ceiling in that package with Biden’s agenda and forget about it even after the election.
in the last days, Biden increased pressure on his party to reach agreement on their economic agenda.