26m ago / 5:01 PM UTC
Treasury official: Biden will not use 14th Amendment in order to increase the debt limit
Adeyemo, the Deputy Treasury Secretary, said that Biden will not unilaterally raise debt ceilings using the 14th Amendment. This is the most explicit rejection by the administration of .
Adeyemo, in an interview with CNN on this morning was asked if Biden would use the 14th Amendment if the nation approaches default without a deal between the two parties.
“I believe the president and secretary have made it very clear that this will not solve our current problems.” Adeyemo replied, “Yes, that’s a no.” He added that Congress is the only way forward, and that they must raise the debt limit.
Adeyemo stated, “We do not have a plan B that will allow us to fulfill the promises we made to creditors, our seniors, our veterans and the American people.” “The only plan that we have, and that has worked in this country for over 200 years, is to pay our bills on time.
44m ago / 4:43 PM UTC
Republicans getting quiet is often a sign that a deal may be close
The normally buzzy and leaky GOP Conference has been quiet on the details of the deal.
McCarthy responded this morning, when asked about reports that a deal for two years was being negotiated behind closed doors. “When we reach an agreement, we’ll ensure that we first inform our entire conference.”
These briefings have not yet taken place, and Republicans from all ideological stripes of the party claim ignorance regarding the details of the agreement.
One Freedom Caucus member said to NBC News that they have not yet received any specific information from the Republican leadership about this deal.
Even members who are usually chatty and close to the speaker today apologized for their inability to share much about a deal that they will be asked to vote next week.
Silence can have many meanings in Washington negotiations. Silence can indicate that a deal may be close. It is often a sign of a tightening agreement, as sensitive issues are brought to the fore and the number of participants with knowledge shrinks.
Could this be the case? The insiders aren’t saying.
“Everyone wants to know the details.” Patrick McHenry said, “Everyone wants a Tweet,” a McCarthy negotiator who is a leading figure. “I want a deal that will change the course of the country.”
1h ago, 4:09 PM UTC
Democrats expect a two-year extension of the debt limit
Three sources with knowledge of the negotiations say that the White House wants to extend the debt ceiling for two years and is confident it will succeed.
The two-year agreement would be an attempt to solve the problem until the election in 2024.
One source said that negotiators were “there” for a 2-year extension of the debt ceiling, adding that we are “close” to a final agreement but still have some issues to work out.
As the details of negotiations are still fluid, it’s unclear whether Republicans have agreed on that. McCarthy dodged questions on Friday regarding whether or not there will be a two year extension. He said, however, that the negotiators had “made progress” last night and needed to “make even more progress.”
McCarthy’s House passed bill included a short extension of less that one year. Hardliners in the GOP want to have a short fuse, so that they can come back and demand concessions at the next election.
1h ago, 4:08 PM UTC
Rep. Gaetz predicts that any deal on debt ceiling will be passed with bipartisan support by moderates
Rep. Matt Gaetz (R-Fla.), a GOP hardliner and McCarthy critic, predicted today that a bill to raise the debt ceiling would be passed with 80-100 Democrat vote and 140-160 Republican vote.
He referred to “the squad,” an influential group of progressive Democrats, and the House Freedom Caucus as likely to oppose a bipartisan agreement. This group includes the House’s staunchest conservatives and progressive Democrats. Gaetz said that a deal would “rocket through” the Senate in a Twitter Spaces Event.
Gaetz said that he does not see “any serious threat” against McCarthy’s Speakership during the Debt Ceiling Negotiations. Gaetz was part of the Republican coalition that initially opposed McCarthy as speaker, which forced him to make concessions to ease his removal.
2h ago / 3:12 PM UTC
McCarthy says that negotiators have made “progress,” but will not commit to a final deal today
McCarthy said that negotiators had made “progress” in their work late into the evening yesterday. However, his conference aimed to “change trajectory” for government spending so as to reduce the federal debt.
McCarthy, who arrived at the Capitol this morning, said that he had met with Rep. Garret G. Graves (R-La. ), a key GOP negotiator. He said that his staff had “made progress” last night, but “we have to make more progress.”
McCarthy responded that he would do his best to reach a deal, but it had to be one “worthy of American people.”
The speaker stated that the negotiations on debt ceiling “come down to one thing.”
He said that the issue was about spending, and criticized Democrats for borrowing from other countries. He also criticized them for refusing to add work requirements for those receiving government assistance.
3h ago / 2:11 PM UTC
Sources: Negotiators indicate that talks are stuck over work requirements
One person who spoke to negotiators on Friday morning reported that they seemed “cautiously hopeful” about a deal, but the two sides were still hung up over GOP demands for tighter work requirements as well as a few other issues.
Two sources familiar with the discussions confirmed that both sides are still firmly entrenched on the issue of work requirements and that the White House is pushing back against policies that they fear would “drive Americans to poverty or take away their health insurance.”
The time is running out for a deal to be struck, legislation to be written and passed in the House and Senate by the default deadline of June 1. The first source, a Republican said he believed Treasury Secretary Janet Yellen would be able find a solution to extend the June 1 default deadline.
The person said, “I believe she will come forward and tell us we can prioritise payments.” It’s risky. “It’s not that the markets will react negatively; it’s just risky stuff.”
3h ago / 2:13 PM UTC
Source: Debt ceiling discussions are ‘close, but not there yet’
According to a Democratic Source familiar with the current state of the talks, negotiations over raising the debt ceiling “are close but not yet there.”
The source stated that the broad parameters of a possible deal “are coming together”, but that the White House and the Republican members of Congress still have to work out the details.
Sources said they were hopeful of a deal being reached over the long weekend but any agreement is still open to negotiation.
4h ago / 12:27 UTC
Debt ceiling deal forecast: Maybe today
Washingtonians continue to speculate about whether today is the day.
One Democrat who is familiar with the negotiations said: “Don’t believe it will be today, but could be.”
4h ago / 12:27 UTC
Stock futures are up before Friday’s market opening
CNBC reported that stock futures were slightly higher on Friday as investors awaited signs of progress in debt ceiling negotiations.
Dow Jones Industrial Average Futures climbed 51 points or 0.2%. S&P futures increased by 0.2%. Nasdaq 100 futures rose 0.4%.
Washington also watches Wall Street. Some D.C. insiders speculate that a dip in the stock market may be what is needed to force a deal through.