What to Know in Washington: Set ‘Doomsday Clocks’ on Debt Limit
By Michaela Ross
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With the US government facing the danger of a payments default later this year, Congress has a variety of paths to avert economic disaster and boost the debt ceiling.
All of them would likely involve going right up to the market-rattling brink, according to current and former lawmakers and aides.
The timeline kicks off within weeks, when Treasury Secretary Janet Yellen is expected to advise that the government will deploy extraordinary accounting measures to avoid running out of cash. Those steps are forecast to be exhausted after July.
Republicans now in control of the House are demanding deep spending cuts as the price for an increase in the ceiling, while President Joe Biden and congressional Democrats reject such an outcome.
“I see movement there — but it’s not going to be without a lot of gnashing of teeth and doomsday clocks,” said Rodney Davis, a former Republican representative from Illinois. Read more.
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- At 1:45 p.m., the president departs for New Castle, Delaware
- White House Press Secretary Karine Jean-Pierre and Senior Advisor for Public Engagement Keisha Lance Bottoms give a press briefing at 12:30 p.m.
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To contact the reporter on this story: Michaela Ross in Washington at mross@bgov.com
To contact the editor responsible for this story: Katrice Eborn at keborn@bgov.com
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