Trump just handed Democrats an 'enticing' policy offer — and they should take it: analyst
3 days, 16 hours ago

Trump just handed Democrats an 'enticing' policy offer — and they should take it: analyst

Raw Story  

President-elect Donald Trump is demanding as part of the spending package the GOP is trying to force through that the debt ceiling be extended — or possibly abolished altogether, which Democrats have broadly rejected as a ploy to allow new tax breaks for billionaires. But not so fast, columnist Heather Long wrote for The Washington Post — Trump's proposal is more "enticing" than it appears at first glance, and Democrats would be wise to take it in anticipation of when they eventually return to power. "But in the past two decades, as the national debt has ballooned from $7 trillion in 2004 to $35 trillion, the debt limit has become meaningless," wrote Long. "Twice now — in 2011 and again in 2023 — House Republicans nearly caused the United States to default on its debt to take a political stand against a Democratic president," she wrote — and just the threat of defaulting had devastating consequences for the economy: "U.S. borrowing costs have risen. Both Standard & Poor’s and Fitch Ratings, citing the debt limit and its related political hostage-taking, have downgraded U.S. debt from the highest — and safest — rating to a slightly lower one.

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History of this topic

Biden signs bill that averts a government shutdown and brings a close to days of Washington upheaval
2 days, 1 hour ago

Biden signs bill that averts a government shutdown and brings a close to days of Washington upheaval

Associated Press  

WASHINGTON — President Joe Biden signed a bill into law Saturday that averts a government shutdown, bringing a final close to days of upheaval after Congress approved a temporary funding plan just past the deadline and refused President-elect Donald Trump’s core debt demands in the package. That’s good news for the American people.” House Speaker Mike Johnson, R-La., had insisted …

US: House approves funding bill hours before govt shutdown deadline
2 days, 15 hours ago

US: House approves funding bill hours before govt shutdown deadline

Deccan Chronicle  

Hours to go before a midnight government shutdown, the House approved a new plan late Friday from Speaker Mike Johnson that would temporarily fund federal operations and disaster aid, but drops President-elect Donald Trump's demands for a debt limit increase into the new year.Johnson insisted Congress would "meet our obligations" and not allow federal operations to shutter ahead of the …

Government shutdown is averted just after deadline as Congress rejects Trump’s debt limit demands
3 days, 2 hours ago

Government shutdown is averted just after deadline as Congress rejects Trump’s debt limit demands

Associated Press  

▶ Follow live updates on federal funding negotiations as a government shutdown looms. WASHINGTON — Facing a government shutdown deadline, the Senate rushed through final passage early Saturday of a bipartisan plan that would temporarily fund federal operations and disaster aid, dropping President-elect Donald Trump’s demands for a debt limit increase into the new year. But the day’s outcome was …

Donald Trump hopes a Republican challenges U.S. Rep. Chip Roy over debt ceiling opposition
3 days, 6 hours ago

Donald Trump hopes a Republican challenges U.S. Rep. Chip Roy over debt ceiling opposition

Raw Story  

"Donald Trump hopes a Republican challenges U.S. Rep. Chip Roy over debt ceiling opposition" was first published by The Texas Tribune, a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues. WASHINGTON — President Donald Trump invited a primary challenge against U.S. Rep. Chip Roy on Thursday for …

Government funding bill clears Congress and heads to Biden, averting a shutdown
3 days, 18 hours ago

Government funding bill clears Congress and heads to Biden, averting a shutdown

LA Times  

“If there is going to be a shutdown of government, let it begin now,” President-elect Donald Trump posted on social media. Facing a government shutdown deadline, the Senate rushed through final passage early Saturday of a bipartisan plan that would temporarily fund federal operations and disaster aid, dropping President-elect Donald Trump’s demands for a debt limit increase into the new …

Dozens of Senate Republicans may oppose Trump's top demand: GOP senator
3 days, 20 hours ago

Dozens of Senate Republicans may oppose Trump's top demand: GOP senator

Raw Story  

President-elect Donald Trump has made either significantly raising the debt ceiling or eliminating it all together his top demand in the current standoff over government funding. Indeed, the MAGA leader touted Thursday that he struck a new deal with House Republicans on a spending bill that would punt the debt ceiling for two years. As Raju wrote on X, Sen. …

Democrats dodge a debt ceiling deal
4 days, 18 hours ago

Democrats dodge a debt ceiling deal

Politico  

“Let’s get rid of the debt limit. As much as Democrats would love to disarm this particular legislative time bomb, they’re not in any mood to negotiate with Republicans after Trump and billionaire ally Elon Musk sabotaged the prior deal to keep the government open and provide billions in disaster and farm relief. Rep. Brad Schneider, the incoming chair of …

The rising price of paying the national debt is a risk for Trump’s promises on growth and inflation
4 weeks, 1 day ago

The rising price of paying the national debt is a risk for Trump’s promises on growth and inflation

Associated Press  

WASHINGTON — Donald Trump has big plans for the economy — and a big debt problem that will be a hurdle to delivering on them. Trump has bold ideas on tax cuts, tariffs and other programs, but high interest rates and the price of repaying the federal government’s existing debt could limit what he’s able to do. In his statement …

Inflation, debt, default: Donald Trump’s second term poses massive economic challenges
1 month, 2 weeks ago

Inflation, debt, default: Donald Trump’s second term poses massive economic challenges

Live Mint  

As Donald Trump begins his second term, several key challenges lie ahead. The growing debt burden has already affected investor confidence, sending U.S. government bond yields higher as market participants worry about the long-term sustainability of U.S. fiscal policy. Previous debt ceiling standoffs have pushed the U.S. close to default, and there is concern that the political divide in Washington …

Key US economic data raises global concerns
4 months, 1 week ago

Key US economic data raises global concerns

China Daily  

An American flag flies outside of the US Capitol dome in Washington, US, Jan 15, 2020. "The high debt level can cause significant problems if economic conditions worsen," Ke Jing, associate research professor at the Shanghai Academy of Social Sciences' Institute of International Relations, said. The US abuse of financial sanctions due to dollar hegemony and the high national debt …

Key US economic data raises global concerns
4 months, 1 week ago

Key US economic data raises global concerns

China Daily  

An American flag flies outside of the US Capitol dome in Washington, US, Jan 15, 2020. "The high debt level can cause significant problems if economic conditions worsen," Ke Jing, associate research professor at the Shanghai Academy of Social Sciences' Institute of International Relations, said. The US abuse of financial sanctions due to dollar hegemony and the high national debt …

Rising US debt risk bad for its own and global economy
5 months, 2 weeks ago

Rising US debt risk bad for its own and global economy

China Daily  

A teller counts and arranges dollar notes at an Agricultural Bank of China branch in Qionghai, Hainan province. The International Monetary Fund recently warned that the excessive fiscal deficit and debt scale of the United States are posing a growing risk to its own and the global economy, urging the US to solve this long-standing problem as soon as possible. …

Key GOP economic talking point destroyed by new analysis
5 months, 4 weeks ago

Key GOP economic talking point destroyed by new analysis

Raw Story  

National debt has for decades been a go-to issue Republicans try to use to persuade voters against supporting social programs — an issue that has crept back to the forefront with new reports that annual interest payments serving the national debt now exceed what the U.S. spends on its military. According to the report, former President Donald Trump's contribution to …

Moody’s lowers US credit outlook, though keeps triple-A rating
1 year, 1 month ago

Moody’s lowers US credit outlook, though keeps triple-A rating

Associated Press  

WASHINGTON — The credit rating agency Moody’s Investors Service lowered its outlook on the U.S. government’s debt on Friday to “negative” from “stable,” citing the cost of rising interest rates and political polarization in Congress. Moody’s retained its top triple-A credit rating on U.S. government debt, though it is the last of the three major credit rating agencies to do …

US credit rating downgraded over rising debt, ‘standards of governance’
1 year, 4 months ago

US credit rating downgraded over rising debt, ‘standards of governance’

Al Jazeera  

The downgrade marks only the second cut by a major rating agency in US history. Top rating agency Fitch has downgraded the United States’s credit rating over its rising debt and a “deterioration in standards of governance”, prompting protests from the White House. “The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, …

Fitch downgrades US credit rating, citing mounting debt and political divisions
1 year, 4 months ago

Fitch downgrades US credit rating, citing mounting debt and political divisions

Associated Press  

WASHINGTON — Fitch Ratings has downgraded the United States government’s credit rating, citing rising debt at the federal, state, and local levels and a “steady deterioration in standards of governance” over the past two decades. It said U.S. governance has declined relative to other highly rated countries and it noted “repeated debt limit standoffs and last-minute resolutions.” Biden administration officials …

US public debt is projected to reach 181% of American economic activity in 30 years
1 year, 5 months ago

US public debt is projected to reach 181% of American economic activity in 30 years

Associated Press  

WASHINGTON — The Congressional Budget Office is giving the world a concerning look at the U.S. government’s ledgers: ever higher deficits, greater government spending and tax revenues that only begin to increase when existing tax cuts expire. The nonpartisan agency estimates in its latest 30-year outlook, released Wednesday, that publicly held debt will be equal to a record 181% of …

Just Days To Spare, Senate Gives Final Approval To Debt Ceiling Deal, Sending It To Biden
1 year, 6 months ago

Just Days To Spare, Senate Gives Final Approval To Debt Ceiling Deal, Sending It To Biden

Huff Post  

LOADING ERROR LOADING WASHINGTON — Fending off a U.S. default, the Senate gave final approval late Thursday to a debt ceiling and budget cuts package, grinding into the night to wrap up work on the bipartisan deal and send it to President Joe Biden's desk to become law before the fast-approaching deadline. Senate Majority Leader Chuck Schumer said the bill's …

The debt ceiling drama may feel like it’s over, but it may have only just begun
1 year, 6 months ago

The debt ceiling drama may feel like it’s over, but it may have only just begun

CNN  

New York CNN — President Joe Biden and House Speaker Kevin McCarthy finally reached an agreement to avert the United States’ first default on its debt — but you may want to hold your applause. Credit rating agencies could still downgrade US debt Even if the bill is passed in time to avoid a default, credit rating agencies could still …

America’s debt-ceiling deal means it should now avoid Armageddon
1 year, 6 months ago

America’s debt-ceiling deal means it should now avoid Armageddon

Hindustan Times  

Even in a sharply divided Washington, DC, politics-as-usual sometimes works. The consequences of a debt default, the first in America’s modern history, would be dire: the shock from disruption in the biggest sovereign-debt market, accounting for about one-third of the global total and underpinning pricing in financial markets everywhere, threatened to reverberate through every economy around the world. The gravity …

US debt limit deal: How we got here
1 year, 6 months ago

US debt limit deal: How we got here

Al Jazeera  

Bipartisan deal to raise debt ceiling and avoid ‘disastrous’ default heads to US Congress after weeks-long impasse. The agreement negotiated by Biden and Republican House Speaker Kevin McCarthy would suspend the debt ceiling for two years and cap government spending during the same period. In April, McCarthy put forward a bill to raise the debt ceiling that would advance key …

Debt Limit deal explained: How will it impact US economy, polls and people
1 year, 6 months ago

Debt Limit deal explained: How will it impact US economy, polls and people

Hindustan Times  

The recent agreement between President Joe Biden and House Republicans regarding the debt limit and spending has sparked discussions and debates. Biden and House Speaker Kevin McCarthy reached a final agreement Sunday on a deal to raise the nation's debt ceiling while trying to ensure enough Republican and Democratic votes to pass the measure in the coming week. Non-defense Spending …

Opinion: Don't call the debt-ceiling deal a success. It shouldn't have been a crisis at all
1 year, 6 months ago

Opinion: Don't call the debt-ceiling deal a success. It shouldn't have been a crisis at all

LA Times  

Hous Speaker Kevin McCarthy speaks with reporters about the debt-ceiling negotiations as he arrives at the Capitol on Friday. Here’s what would make this whole mess worth it: Adding a provision to repeal or neutralize the World War I-era law that created the debt limit in the first place. Biden, ever the tradition-bound deal-maker, said last October as Democrats talked …

Race for U.S. debt deal as talks go to the wire
1 year, 6 months ago

Race for U.S. debt deal as talks go to the wire

The Hindu  

Democrats and Republicans seemed within grasping distance Saturday of a deal to end the U.S. debt ceiling standoff, with both sides playing hardball in the final race for an agreement to avert a potentially catastrophic default. President Joe Biden gave the strongest sign yet on Friday night that the drama in Washington might be drawing to an end — saying …

US debt ceiling has catastrophic effects- 83 lakh job losses, world recession I EXPLAINED
1 year, 6 months ago

US debt ceiling has catastrophic effects- 83 lakh job losses, world recession I EXPLAINED

India TV News  

US Debt ceiling row: Amid the looming catastrophic recession, US President Joe Biden and House Speaker Kevin McCarthy are narrowing in on a two-year budget deal aiming to curb federal deficits in exchange for lifting the nation’s debt ceiling and staving off an economically devastating government default. White House estimates say a prolonged default could cause 8.3 million job losses …

Where do things stand as the US rolls back debt ceiling deadline?
1 year, 6 months ago

Where do things stand as the US rolls back debt ceiling deadline?

Al Jazeera  

US Treasury Secretary Janet Yellen says the agency will run out of funds to meet financial obligations by June 5. Congress is tasked with increasing the nation’s debt ceiling, and Republican legislators have used their majority in the US House of Representatives as leverage to demand cuts to social programmes in exchange for a ceiling increase as a default looms …

‘Time’s up’: Deal on US debt ceiling close as default looms
1 year, 6 months ago

‘Time’s up’: Deal on US debt ceiling close as default looms

Al Jazeera  

A default could upend global financial markets and push the United States into a major recession. US President Joe Biden and top congressional Republican Kevin McCarthy are closing in on a deal that would raise the government’s $31.4 trillion debt ceiling for two years while capping spending on most programmes, news reports say. The potential agreement would increase funding for …

Threat of US credit downgrade looms over debt ceiling talks
1 year, 6 months ago

Threat of US credit downgrade looms over debt ceiling talks

Associated Press  

WASHINGTON — With one of three major rating agencies warning that America’s AAA credit is at risk, the stakes are growing in the standoff in Washington over raising the nation’s debt limit. But Yellen has warned that Treasury will likely run out of money to meet all its obligations as soon as June 1, which is being described as the …

'Productive' Talks No Deal Yet: What Is US Debt Ceiling, Over Which US Lawmakers Have Locked Horns?
1 year, 7 months ago

'Productive' Talks No Deal Yet: What Is US Debt Ceiling, Over Which US Lawmakers Have Locked Horns?

ABP News  

US President Joe Biden and Republican House Speaker Kevin McCarthy have called their latest round of negotiations on the debt ceiling “productive”, but they still haven’t reached a deal to avoid looming debt default. The US Treasury departments websites say that the debt limit is the total amount of money that the United States government is authorised to borrow to …

US debt ceiling impasse continues, attacks escalate as deadline draws near
1 year, 7 months ago

US debt ceiling impasse continues, attacks escalate as deadline draws near

India Today  

President Joe Biden's administration and congressional Republicans traded barbs on Saturday over raising the federal $31.4 trillion debt ceiling, with both sides casting the other's proposals as too extreme. White House Press Secretary Karine Jean-Pierre noted in a statement that Biden and Republican House of Representatives Speaker Kevin McCarthy had agreed that any budget agreement would need to be bipartisan …

Most favor pairing debt limit rise with deficit cuts, but few following debate closely: AP-NORC poll
1 year, 7 months ago

Most favor pairing debt limit rise with deficit cuts, but few following debate closely: AP-NORC poll

Associated Press  

WASHINGTON — About two-thirds of U.S. adults say they are highly concerned about how the national economy would be affected if the U.S. debt limit is not increased and the government defaults on its debts, according to a new poll, even as few say they have a solid understanding of the ongoing debt limit negotiations. Hopefully they’ll do it again.” …

Most say pair debt limit increase with deficit cuts, but few following debate closely: AP-NORC poll
1 year, 7 months ago

Most say pair debt limit increase with deficit cuts, but few following debate closely: AP-NORC poll

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Job cuts, no Social Security checks: How consumers could be pinched by a US government default
1 year, 7 months ago

Job cuts, no Social Security checks: How consumers could be pinched by a US government default

Associated Press  

WASHINGTON — All the hand-wringing in Washington over raising the debt limit can seem far removed from the lives of everyday Americans, but they could end up facing huge consequences. The bill would also reclaim billions of unspent COVID-19 funding, eliminate clean energy tax credits Biden signed into law last year and reverse his student debt forgiveness and repayment plan. …

Democrats Are Not *Not* Negotiating Over The Debt Limit
1 year, 7 months ago

Democrats Are Not *Not* Negotiating Over The Debt Limit

Huff Post  

LOADING ERROR LOADING WASHINGTON — President Joe Biden maintains that he won’t negotiate over the federal government’s obligation to pay its bills. Still – a White House aide insisted Friday that Biden is negotiating only on the federal budget, separately from the much more urgent question of raising the “debt ceiling” so that the federal government can avoid defaulting on …

This time, the debt ceiling crisis really could end in disaster
1 year, 7 months ago

This time, the debt ceiling crisis really could end in disaster

LA Times  

The last time the U.S. government went to the brink of defaulting on its debt — in 2011 — the stock market tumbled and there was something close to a panic across the economy before Washington came to its senses and cut a deal. And it doesn’t have to come to a full-fledged default for the government and millions of …

Opinion: Why McCarthy's debt ceiling strategy is more doomed than doable
1 year, 7 months ago

Opinion: Why McCarthy's debt ceiling strategy is more doomed than doable

LA Times  

Some Republican lawmakers have said they would vote against any compromise that House Speaker Kevin McCarthy could attempt with Senate Democrats and President Biden on the debt ceiling. House Speaker Kevin McCarthy has been strutting his stuff for two weeks since wheedling his slim majority of House Republicans to pass a bill to raise the debt limit, supposedly strengthening his …

Debt limit fight: Trump tells GOP 'do a default' if needed, but talks with Biden in full swing
1 year, 7 months ago

Debt limit fight: Trump tells GOP 'do a default' if needed, but talks with Biden in full swing

The Independent  

Sign up for the daily Inside Washington email for exclusive US coverage and analysis sent to your inbox Get our free Inside Washington email Get our free Inside Washington email SIGN UP I would like to be emailed about offers, events and updates from The Independent. “I say to the Republicans out there — congressmen, senators — if they don’t …

US default on $31.46 trillion debt may lead to global crisis: Treasury chief
1 year, 7 months ago

US default on $31.46 trillion debt may lead to global crisis: Treasury chief

Hindustan Times  

U.S. Treasury Secretary Janet Yellen on Thursday urged Congress to raise the $31.4 trillion federal debt limit and avert an unprecedented default that would trigger a global economic downturn and risk undermining U.S. global economic leadership. "It would also risk undermining U.S. global economic leadership and raise questions about our ability to defend our national security interests." Yellen said she …

Biden warns ‘millions of jobs’ at risk if debt ceiling not raised
1 year, 7 months ago

Biden warns ‘millions of jobs’ at risk if debt ceiling not raised

Al Jazeera  

US president accuses Republicans of holding economy hostage by demanding spending cuts to raise debt limit. United States President Joe Biden has warned the economy could enter a recession and shed millions of jobs unless Republicans agree to raise the country’s $31.4 trillion debt ceiling before a fast-approaching deadline. In a campaign-style speech in a swing district in New York …

What happens if the US defaults on its debt?
1 year, 7 months ago

What happens if the US defaults on its debt?

Al Jazeera  

As a game of chicken plays out in Washington, DC, over whether to raise the limit on US government borrowing to avoid a default on its debt, the one thing that experts agree on is that a default would be catastrophic. As these cuts worked their way through the economy, “the hit to growth would be overwhelming,” Yaros and several …

How does the US debt limit standoff end? A look at the possible scenarios
1 year, 7 months ago

How does the US debt limit standoff end? A look at the possible scenarios

Associated Press  

WASHINGTON — Just how does this debt limit standoff end? Biden wants to increase the government’s $31.4 trillion legal borrowing limit, so that the federal government can continue to pay its bills and the risk of a historic default goes away. This would be in line with the GOP’s effort to sync the budget debate with the debt limit, while …

Lawsuit: Yellen should ignore ‘unconstitutional’ debt limit
1 year, 7 months ago

Lawsuit: Yellen should ignore ‘unconstitutional’ debt limit

Associated Press  

WASHINGTON — A union of government employees on Monday sued Treasury Secretary Janet Yellen and President Joe Biden to try to stop them from complying with the law that limits the government’s total debt, which the lawsuit contends is unconstitutional. “Nothing in the Constitution or any judicial decision interpreting the Constitution,” the lawsuit states, “allows Congress to leave unchecked discretion …

US debt-ceiling: Biden, McCarthy aim to break standoff as default crisis looms
1 year, 7 months ago

US debt-ceiling: Biden, McCarthy aim to break standoff as default crisis looms

Live Mint  

President Joe Biden and top Republicans and Democrats from Congress are set to sit down this week to try to resolve a three-month standoff over the $31.4 trillion US debt ceiling and avoid a crippling default before the end of May. Biden is due to meet on Tuesday at the White House with McCarthy for the first time since Feb. …

Yellen: ‘No good options’ if Congress fails to act on debt
1 year, 7 months ago

Yellen: ‘No good options’ if Congress fails to act on debt

Associated Press  

WASHINGTON — Treasury Secretary Janet Yellen said Sunday that there are “no good options” for the United States to avoid an economic “calamity” if Congress fails to raise the nation’s borrowing limit of $31.381 trillion in the coming weeks. “And it’s widely agreed that financial and economic chaos would ensue.” An increase in the debt limit would not authorize new …

Yellen says there are ‘no good options’ if Congress fails to act on debt
1 year, 7 months ago

Yellen says there are ‘no good options’ if Congress fails to act on debt

LA Times  

Treasury Secretary Janet Yellen speaks at Johns Hopkins University School of Advanced International Studies on April 20 in Washington. Yellen said Sunday there are “no good options” for the U.S. to avoid an economic “calamity” if Congress fails to raise the nation’s borrowing limit. Treasury Secretary Janet L. Yellen said Sunday that there are “no good options” for the United …

Debt ceiling: Congress currently has two options for avoiding economic catastrophe—but they have some serious pitfalls!
1 year, 7 months ago

Debt ceiling: Congress currently has two options for avoiding economic catastrophe—but they have some serious pitfalls!

Slate  

On Monday, Treasury Secretary Janet Yellen sent Congress an update on when the government could run out of cash to pay its bills. But rather than gaming out the available legislative days and arcane procedures in House rules, let’s focus on the bigger problem with this approach: Getting 218 House members—not to mention 60 Senators—to commit to a clean debt …

Why Republican presidential candidates are avoiding the debate on the US debt ceiling
1 year, 7 months ago

Why Republican presidential candidates are avoiding the debate on the US debt ceiling

Firstpost  

Washington: It is the one topic that everyone on Capitol Hill is talking about and yet hundreds of miles away, on the plains of Iowa and the hills of New Hampshire, none of the Republicans vying for the 2024 presidential nomination have even mentioned it. But as Republican presidential hopefuls including Florida Governor Ron DeSantis and former President Donald Trump …

White House predicts economic fallout if US fails to make debt payments
1 year, 7 months ago

White House predicts economic fallout if US fails to make debt payments

Firstpost  

The White House issued a dire warning on Wednesday, predicting a future of falling equities and rising unemployment should the United States fail to make its debt payments. The US government’s failure to pay its financial obligations might result in eight million job losses this summer and a six per cent decline in GDP, according to the President’s Council of …

White House warns of recession as debt limit fight drags on
1 year, 7 months ago

White House warns of recession as debt limit fight drags on

India Today  

White House economists on Wednesday warned of “severe damage” to the US economy in the event of a debt default, warning that a prolonged default could cause 8.3 million job losses and the stock market to tumble 45%. The White House analysis warned that a protracted default could cost more than 8 million jobs in the third quarter of 2023, …

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