Headline RoundupJanuary 17th, 2023

Will Congress and the White House Reach a Deal on the Debt Ceiling?

Summary from the AllSides News Team

House Speaker Kevin McCarthy (R-Calif.) is pushing for controls on federal spending as a condition of raising the debt ceiling, but the White House has said it would not negotiate. 

Latest Developments: White House Press Secretary Karine Jean-Pierre said Friday that Congress must raise the debt ceiling “without conditions” to avoid defaulting on the government’s debt, adding, “There’s been a bipartisan cooperation when it comes to lifting the debt ceiling, and that’s how it should be.” McCarthy rejected that idea on Tuesday, saying a non-conditional increase was “totally off the table.”

For Context: On Friday, Treasury Secretary Janet Yellen warned that “Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability.” Yellen said the U.S. would hit the current $31.4 trillion debt limit on Thursday, January 19, but the Treasury could use emergency measures to prevent a default until early June. However, House Republicans see this as an opportunity to rein in deficit spending; talking to reporters, McCarthy compared the practice to a child using a credit card. 

How the Media Covered It: News and analysis of the upcoming debt ceiling fight was common across the news media, often describing House Republicans as breaking with “tradition.” While some coverage focused on House Republicans and the White House, other coverage focused on financial institutions’ sometimes-pessimistic reactions.

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