United States debt limit could increase for months, says Congress
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Congress and the White House can raise the United States debt limit for a few months while they look for a broader and long-term budget agreement, said Senate Republican leader, Mitch McConnell.
The government has warned that Barack Obama will run out of money to pay the bills for the nation if Congress does not raise the federal debt ceiling to $14.3 trillion before August 2nd, a scenario that could lead the country back to the recession and hinder its access to global financial markets.
Congressional Republicans, particularly the House of Representatives, have refused to raise the debt ceiling unless it is accompanied with significant spending cuts. McConnell said that the ceiling could be raised enough to last several months so that negotiations could continue for a broader agreement that includes the so-called reforms in social programs such as Medicare health.
“The president and vice president, everyone knows they have to address social expenditure reforms,” said McConnell on the program 'Face the Nation' on the television channel CBS. “If we cannot do that, then we will probably end up with a proposal for short-term, you know, a few months. And we'll have the same discussion again in the fall (northern hemisphere),” said McConnell.
Vice President Joe Biden is leading negotiations with congressional Democrats and Republicans trying to agree on reducing the large fiscal deficit and raise the debt limit so that the United States can avoid a default on financial obligations and continue to have access to credit.
Biden and major Democratic and Republican lawmakers seek to reduce the country's persistent budget deficit by $4 trillion over the next 10 years, so that lawmakers can raise the debt limit. The group led by Biden deadlocked on two areas that could provide the biggest savings budget.
Republicans say they will not support any tax increase, while Democrats say they will not reduce health benefits for retirees on Medicare. The cost of this program is projected to nearly double over the next 10 years.
