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