Congress Closing in on Debt Ceiling Deal

By:
Chris Gaetano
Published Date:
Oct 7, 2021
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Democrats and Republicans are approaching a deal that will break the weeks-long impasse on the debt ceiling, at least for a little while, the Wall Street Journal reported.

The two parties have been in a standoff over the issue, with Senate Minority Leader Mitch McConnell (R-Ky.) having blocked previous attempts by Democrats to raise the debt ceiling enough to meet the government's current obligations. However, last night, the senator offered a short-term deal that would allow the other party to use normal procedures to raise the debt limit by a specific dollar amount that would cover current spending levels into December, when, presumably, this debate would ramp up again. The Journal said that Democrats are likely to accept this deal, which would stave off the national default warned about by Treasury Secretary Janet Yellen

Both Democrats and Republicans claim they got the better of each other, according to Bloomberg. McConnell believes this move will "moot" the Democrats' arguments about a time crunch, and will make them twice go on the record about approving large amounts of debt, which he believes can be used to punish them in campaign ads. Conversely, Democrats are saying McConnell caved in to their demands, which gives them more breathing room to negotiate on the infrastructure and reconciliation packages. 

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