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Biden’s agenda at stake as lawmakers delve into debt limits and spending

US budget update

US President Joe Biden and Congressional Democrats prepare for a desperate dash to pass the trillions of dollars economic agenda, avoid defaults, and save the prospect of worsening in the 2022 midterm elections We are.

Eight months after entering the White House, Biden will have to overcome a series of hurdles in the coming weeks to fulfill its key campaign promises and stop the steady decline in approval rates.

On the domestic side, White House and Congressional Democrats are split in negotiations on Biden’s $ 1.2 trillion bipartisan infrastructure bill, planning a $ 3.5 trillion investment in social safety nets. The division between moderate and progressive Democrats over the details of tax increases and the scope of spending proposals could upset Biden’s plans for the world’s largest economy.

Late Friday, the president called Speaker of the House Nancy Pelosi and Speaker of the Senate Chuck Schumer and vowed to “keep in touch” with two top Democrats on the issue over the weekend. “The next few days will be a period of fierceness,” Pelosi told Democrats on Saturday that he hopes the infrastructure package and budget bill will be passed by the end of the week. rice field.

Pelosi called on Democratic lawmakers to meet on Monday night, when tensions within the presidential party are likely to be exposed.

At the same time, the possibility of a budget crisis is imminent if no agreement is reached to maintain government funding by Friday. If you fail to raise your debt limit, Federal closure Or, more dangerously, the Treasury could run out of cash and default in mid-October.

In it, Biden will contain a new surge of migrants from Haiti on the southern border, a chaotic withdrawal from Afghanistan for next week’s parliamentary hearing, and a fallout from a confusing development. I’ve been having a hard time. COVID-19 booster, Has clouded confidence in Biden’s ability to tackle the pandemic.

“I think people who can understand are frustrated … Frustrated, you know,’I thought this would be better. Biden said in a statement from the White House on Friday. Admitted.

Democratic political strategists and lawmakers are concerned that a decline in Biden’s approval rate could undermine the party’s chances of maintaining parliamentary control next year. Democrats were comforted by Governor Gavin Newsom’s victory in this month’s California national dismissal election, but if the political mood remains sour on their side, the party loses to the Virginia guberna election in November. There is growing concern that it may be.

“Presidential policy is popular, but people don’t always hear about it,” warned Josh Schwerin, a former Democratic political aide in the Saratoga strategy consulting group.

Schwerin believes that a parliamentary agreement on Biden’s economic bill will eventually come to fruition. “There was negotiation to the very end, and until that happened, it would be suspicious,” he said.

But economists and investors are beginning to worry more about the growing stalemate in Washington.

By early next week, the White House and top Democrats in Congress have pushed for transactions on both the infrastructure bill and the $ 3.5 trillion budget package.However Joe ManchinWest Virginia Democratic Senator West Virginia, a centrist politician who proved to be a thorn on the part of the administration, told Politico in an interview released Saturday that he did not see him in a hurry. There is no timeline. “

Meanwhile, Democrats and Republicans are stuck on raising debt limits as the federal government pays attention to possible closures. The Democrats argued that any effort should be bipartisan, Mitch McConnell and the Senate Republicans categorically refused to sign, and the Democrats argued that they would do it alone.

Nancy Vanden Horten and Gregory Dako of Oxford Economics warned in a memo on Friday that “in the short term, a failure in fiscal policy poses a significant risk to our economic outlook.”

US Treasury Secretary Janet Yellen claims that the federal government was unable to lift restrictions on “catastrophe” borrowing. On Friday, Washington’s think tank, the Bipartisan Policy Center, known for analyzing government cash flow, sharpened its own estimates of defaults that could occur between October 15th and November 4th. ..

Shy Akabas, director of economic policy at the Bipartisan Policy Center, said that if the resolution was not reached by that time, the government would not only risk missing important payments such as military salaries and severance pay, but also the economy. He said it would also cause confusion.

Wall Street tycoon Beth Hammac of Goldman Sachs and Brian Sack of the DE Shaw Group, who head the U.S. government advisory group, are also “significant” to the $ 22 trillion financial market, which serves as the foundation of the global financial system. Warned that there was “confusion”. And a new question about US creditworthiness.

Federal Reserve Board Chair Jay Powell also noted the assumption that the US central bank could “fully protect” financial markets or the economy more broadly if unresolved.

Biden’s agenda at stake as lawmakers delve into debt limits and spending

https://www.ft.com/content/70d5a30d-4ae5-4777-8348-b83000c16056 Biden’s agenda at stake as lawmakers delve into debt limits and spending

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