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Lawmakers Work To Reach Deal As Debt Ceiling Deadline Looms
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Story By: Larry Stine

 

 

 
 
 
   
   
  Originally Published on: 10/16/2013

The ratings agency Fitch warns U.S. bonds may be downgraded in the near future, as lawmakers struggle to come up with a plan to raise the debt ceiling. The federal government is expected to hit its limit on borrowing Thursday and Andrew Spencer reports lawmakers are still trying to work out the details of a potential deal. "We don't have a lot of time, and so what I'm suggesting to the Congressional leaders is let's not do any posturing, let's not try to save face," says President Barack Obama. President Obama hosts a closed-door meeting in the Oval Office, Wednesday, not with Congressional leaders, but with Vice Presidetn Joe Biden and Treasury Secretary Jack Lew. The U.S. Treasury has said it would run out of money to pay the nation's bills Thursday, essentially hitting its credit limit, the debt ceiling set by Congress. Senate leaders signaled they were close to an agreement to raise the debt ceiling and end the government shutdown, but they haven't reached one yet. Earlier Tuesday, a counterproposal from House Republicans was scrapped, as House Speaker John Boehner stuggled to come up with enough votes. Instead, some Republicans expect Boehner to expedite the Senate's plan. "He will have to essentially pass the bill that is negotiated between Senators McConnell and Reid, and I believe that the House would first pass it then send it to the Senate," says Republican Rep. Charlie Dent of Pennsylvania. Some Republicans argue raising the debt ceiling without budget cuts simply kicks the can down the road. In an interview with CNN affiliate, WABC, the president said the compromise will likely have bigger budget cuts than Democrats would prefer. "Because it makes it very difficult for us to invest in things like early childhood education. It makes it difficult for us to invest in rebuilding our roads and bridges, all the things that are necessary to actually build the economy and put people back to work," said President Obama.
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