Congress will have a shorter-than-expected window to negotiate a debt limit increase this year thanks to policy decisions by both the Biden administration and the Federal Reserve
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A shorter time period would be just one of the pressure points that’s threatening to make the upcoming debt limit standoff one of the most contentious in history. Conservative Republicans emboldened by their influence in the House speaker race are demanding steep budget cuts in exchange for letting the government take on more debt. The Biden administration is insisting on a clean increase and refusing to negotiate.
“The period of time that extraordinary measures may last is subject to considerable uncertainty due to a variety of factors, including the challenges of forecasting the payments and receipts of the U.S. government months into the future,” Yellen told Congress last week.President Joe Biden speaks about his student debt relief plan at Central New Mexico Community College, on Nov. 3, 2022, in Albuquerque, N.M.
Akabas of the Bipartisan Policy Center said that amounts to about $5 billion per month that the government is missing to pay its obligations.Traders work on the floor at the New York Stock Exchange as Federal Reserve Chair Jerome Powell speaks after announcing a rate increase in New York on Nov. 2, 2022. | Seth Wenig/AP Photo
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