U.S. Speaker of the House Kevin McCarthy (R-CA) speaks to reporters as he returns from a House Republican caucus meeting, at the U.S. Caption on May 23, 2023 in Washington, DC.
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WASHINGTON — Negotiations over raising the U.S. debt limit resumed Wednesday, and the two sides were still miles apart with only eight days left to pass a bill before the earliest date the U.S. could face serious risk of default.
In the Capitol, negotiators for House Republicans and the White House were expected to resume talks in the conference room just off of House Speaker Kevin McCarthy’s office, where they have holed up for hours every day this week.
The talks hit a “speed bump,” a Democratic official familiar with the situation told NBC News on Wednesday.
But outside the Beltway, concerns grew about whether negotiators would be able to reach a deal to cut government spending enough to win the GOP votes needed to pass a bill that raises the debt ceiling before June 1.
Treasury Secretary Janet Yellen said Wednesday she was already seeing “some stress in financial markets,” driven by fears that the U.S. could stumble into a first-ever debt default.
Debt ceiling related stress was impacting Treasury markets in particular, Yellen said at a Wall Street Journal event. These signs of stress “should be a reminder of the importance of reaching a timely agreement.”
But after a week of daily sessions led by a group of veteran negotiators, people on both sides say the gap between what House Republicans want and what the White House is willing to give seems wider than ever.
For example, one of the lead delegates for Republicans, Rep. Patrick McHenry of North Carolina, laid bare on Tuesday night what had up to that point only been implied, when a reporter asked him what concession Democrats were getting as part of the talks, in order to win their votes in the House.
“The debt ceiling,” he said.
“That’s what they’re getting,” added Rep. Garret Graves of Louisiana, another GOP…
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