U.S. debt ceiling debate continues with deadline looming

(CNN) As the deadline for a default on the US national debt approaches, President Joe Biden and House Speaker Kevin McCarthy are still at odds over how to proceed. McCarthy claims to have enough support to pass his debt limit legislation, which includes a $1.5 trillion hike to the debt ceiling but with cuts to domestic spending programs. However, Biden insists on a cut-free proposal and has criticized McCarthy’s bill, stating that it would “make it easier for the wealthy to cheat on taxes.” Moody’s Analytics warns that a debt ceiling breach could cost the US millions of jobs and have long-term damage on the economy.

In a statement, McCarthy asserted that he could not imagine anyone in his conference wanting to go along with Biden’s “reckless spending.” Representative Debbie Dingell of Michigan countered that raising the debt ceiling was a separate issue from spending and that it was necessary to ensure that the nation could pay its bills. President Trump and President Reagan also warned against playing games with the debt ceiling, she noted.

Biden has accused McCarthy’s bill of potentially harming the economy, stating that if it were to pass. Senator Amy Klobuchar of Minnesota echoed these concerns, noting that the bill’s passage could lead to interest rate hikes and market instability.

Moody’s Analytics has warned that a debt ceiling breach could have severe economic consequences, potentially costing millions of jobs and doing long-term damage to the US economy. Despite the ongoing disagreement, both sides must find a solution soon, as the deadline for a default looms ever closer.