President Biden and House Minority Leader Kevin McCarthy met on Tuesday to discuss the debt limit, but they failed to come to an agreement.
Biden urged McCarthy to allow Democrats to raise the debt limit independently, but McCarthy refused. He said that Democrats should raise the debt limit through bipartisan legislation.
The meeting showed the growing partisan divide over the debt limit. Democrats argue that Republicans are playing politics with the economy, while Republicans say that Democrats should be held accountable for their spending.
The debt limit is the maximum amount of money the federal government can borrow. If the debt limit is not raised, the government will be unable to pay its bills and could default on its debt.
A default would have a devastating impact on the economy. It could lead to a stock market sell-off, a rise in interest rates, and a recession.
It is unclear what will happen next. Democrats may try to raise the debt limit through reconciliation, allowing them to do so with a simple majority vote in the Senate.
Republicans have vowed to filibuster any attempt to raise the debt limit through reconciliation.
Key Points:
- President Biden and House Minority Leader Kevin McCarthy met on Tuesday to discuss the debt limit, but they disagreed.
- Biden urged McCarthy to allow Democrats to raise the debt limit independently, but McCarthy refused. He said that Democrats should raise the debt limit through bipartisan legislation.
- The meeting showed the growing partisan divide over the debt limit. Democrats argue that Republicans are playing politics with the economy, while Republicans say that Democrats should be held accountable for their spending.
- The debt limit is the maximum amount of money the federal government can borrow. If the debt limit is not raised, the government will be unable to pay its bills and could default on its debt.
- A default would have a devastating impact on the economy. It would lead to a stock market sell-off, a rise in interest rates, and a recession.
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