A senior White House economic adviser said negotiations over raising the US debt ceiling are an “absolute nonstarter” for President Joe Biden, though he’s ready to discuss spending with congressional Republicans.
(Bloomberg) — A senior White House economic adviser said negotiations over raising the US debt ceiling are an “absolute nonstarter” for President Joe Biden, though he’s ready to discuss spending with congressional Republicans.
“There is a separate set of discussions and negotiations over fiscal policy,” Jared Bernstein, a member of Biden’s Council of Economic Advisers, said on “Fox News Sunday.” “We have our budget, we want to see what Republicans have.”
“That’s the discussion that the president is anxious to have with Republicans,” he said. “But the problem is, they really need to bring a plan to the table.”
Bernstein’s comments are the latest positioning in a looming showdown over the debt limit after Biden and House Speaker Kevin McCarthy met on Feb. 1 for what the White House called a “frank and straightforward dialogue” that will continue.
Republicans say they want federal spending cuts in return for agreeing to raise the limit. If Congress doesn’t increase the ceiling by sometime in June, the US risks defaulting on its debts.
“The negotiation over the debt ceiling, over default, is an absolute nonstarter for this president,” Bernstein said.
By law, the federal government’s debt cannot exceed $31.4 trillion, a cap that was reached on Jan. 19. The Treasury has said it can hold out at least through early June by using special accounting maneuvers.
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