Biden, McCarthy Draw Closer to Debt Ceiling Deal

    Biden, McCarthy Draw Closer to Debt Ceiling Deal
    Last updated May 26, 2023
    Image credit: The White House [via Wikimedia Commons]


    • The US White House and top House Republicans have reportedly narrowed on a two-year spending deal to raise the debt ceiling, but nothing has been finalized yet as negotiators leave Washington, D.C., for Memorial Day weekend.[1]
    • This comes as House Speaker Kevin McCarthy (R-Calif.) expressed optimism about reaching an agreement to prevent a default after months of stalemate as Treasury Secretary Janet Yellen moved the deadline up four days to June 5 on Friday.[2]
    • As of Wednesday, Treasury had less than $50B in its emergency bank account — which was at $635B at the beginning of the fiscal year.[3]
    • Pres. Joe Biden stated Thursday that both sides are in full agreement that the US will not default on its debt, but talks haven't been disclosed. While the Times and the Post reported some detailed items, no components have been firmly agreed, according to Fox News.[4]
    • Deputy Treasury Secretary Wally Adeyemo reasserted that Biden has been clear that the only way to solve this problem is for Congress to raise the debt ceiling, explicitly rejecting the use of the 14th Amendment.[5]
    • Meanwhile, CNN reported that the House GOP whip had scheduled a phone call at 8 p.m. EDT on Friday to discuss what steps are needed if a deal to increase the ceiling is made. According to McCarthy, the House would need four days to push legislation through.[6]


    Pro-establishment narrative

    While this laborious process is far from over, real progress is being made in negotiations to raise the debt ceiling. The US defaulting on its debts isn't an option, and both political parties are working hard to ensure that doesn't happen.

    Establishment-critical narrative

    While lawmakers may be hopeful about negotiations, this process has taken far too long. Nobody should use the threat of defaulting as leverage; both Democrats and Republicans have failed the electorate by putting partisan politics ahead of the national interest.

    Nerd narrative

    There's a 3% chance that the US will default on its sovereign debt before July 1, 2023, according to the Metaculus prediction community.

    Establishment split



    More neutral establishment stance articles

    Sign up to our newsletter!