Senate Minority Leader Mitch McConnell said Tuesday that only a negotiation between House Speaker Kevin McCarthy and President Biden can resolve the debt ceiling fight, noting that the Senate he would end up accepting any deal struck by House and White House Republicans.
McConnell said the slim Democratic majority in the Senate makes it highly unlikely the Senate will be able to pass a debt-ceiling resolution that the GOP-led House can accept. For that reason, he said it’s up to McCarthy and Biden to find a way forward.
“I can’t imagine any type of debt ceiling measure that can pass the Senate will also pass the House,” McConnell told reporters. “In this current situation, the debt ceiling fix, if there is one…will have to come out of the House.”
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“So I think it’s entirely reasonable that the new speaker and his team put cost cutting on the table,” he added. “I wish him the best in talking to the president. That’s where a solution lies.”
McConnell’s prediction reflects the reality of a 51-49 Senate that needs 60 votes to pass legislation. Even if nine Senate Republicans agreed with Senate Democrats to pass a debt ceiling increase, that deal would go nowhere in the House, where Republicans are demanding major spending cuts before agreeing to raise the limit. of indebtedness.
Similarly, Senate Democrats are unlikely to break ranks and support a debt ceiling increase by Senate Republicans that calls for spending cuts.
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So far, House Republicans have called on President Biden to broker a deal that would allow for an increase in the debt ceiling and cut spending. But Biden and the White House have said they will not negotiate, warning that Republicans are threatening economic disaster by demanding an increase in the debt ceiling with conditions attached.
Several Democrats have warned that the GOP’s demands will lead to economic ruin. On Tuesday morning, Senate Majority Leader Chuck Schumer, DN.Y., envisioned the worst-case scenario of a debt default as a result of the GOP’s demands for spending cuts.
“Listen to what could happen if we don’t comply,” Schumer said on the Senate floor. “Interest rates will go up on mortgages, on car loans, on credit cards. Pensions, the money people had saved, will lose billions. The same will happen with IRAs and 401(k)s.” in all likelihood. Home values will go down because when interest rates go up, people are willing to pay less for houses.”
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Republicans have said they have no interest in allowing the government to default, and that the two parties have previously worked to agree new spending terms during a debt-ceiling debate. The Republican Party also says the growing $31.4 trillion debt is as much a threat to America’s security as a potential default.
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“We have several months to reach a bipartisan agreement, which Congress has successfully accomplished numerous times in prior debt ceiling negotiations,” House Budget Committee Chairman Jodey told Fox News. Arrington, Republican of Texas. “While defaulting on our debt is an unrealistic outcome, the bankruptcy of the country and the future of our children is a real and irreparable scenario.”