The need to increase the debt ceiling has emerged as the top issue in DC.  The Congressional deadlock took on new urgency last week when Treasury Secretary Janet Yellen surprised markets and political leaders when she put out a statement that the X-date for Treasury funding may be as early as June 1.  This leaves only three weeks for Washington to find an exit strategy for the government hitting the statutory debt ceiling.

Two weeks ago House Republicans eked out a one vote victory in a bill on their debt ceiling/spending plan. The bill was a move by Speaker McCarthy to get President Biden to sit down to try to negotiate a budget and debt ceiling deal.

The Republican House legislation would increase the debt ceiling by $1.5T or until April 1, 2024 whichever comes first.  In order to get fiscally conservative Republicans to vote for the bill the proposal cuts over $4.5T in spending over 10 years. 

The House passage of the debt ceiling bill achieved Speaker McCarthy’s main goal of getting talks started with the White House when President Biden invited the Speaker and the other Congressional leaders to the White House on Tuesday.  The meeting will be the first head to head talks between the Speaker and the President on the debt ceiling since Febr...

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