: Debt-ceiling standoff: Here’s what’s next as Democrats and Republicans warn about U.S. default

by | Apr 19, 2023 | Stock Market

While a divided Washington has made little progress in raising the U.S. debt limit so far this year, there will be an endgame at some point. But when could that hit, and what are the steps to get there? Here’s what looks likely to come next.

Republican-led House aims to vote on proposal in a matter of weeks In a speech Monday at the New York Stock Exchange, House Speaker Kevin McCarthy said his chamber will vote “in the coming weeks” on legislation that would suspend the limit on federal borrowing for a year, while returning federal spending to 2022 fiscal-year levels and limiting the growth of outlays over the next 10 years to 1%. McCarthy and his fellow Republicans have demanded spending cuts in exchange for raising the ceiling for federal borrowing, while President Joe Biden and his fellow Democrats have said the lift should be made without conditions. During his remarks at the NYSE, the speaker reiterated his call for Biden to negotiate on the debt limit, saying: “The longer President Biden waits to be sensible, to find an agreement, the more likely it becomes that this administration will bumble into the first default in our nation’s history.” But top Democrats have not sounded won over at all, with Senate Majority Leader Chuck Schumer saying on Monday afternoon that McCarthy is continuing to “bumble our …

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