WASHINGTON (AP) — House Republicans are pushing debt ceiling talks to the brink. As they prepare to leave town Thursday for a long Memorial Day recess, it’s a display of risky political bravado. They’re just days out from a potentially devastating debt default if Congress fails to act to raise the borrowing limit. The fallout could hurl the global economy into chaos.
Speaker Kevin McCarthy says he’s directing his team to work 24/7 with the White House to solve it. Republicans want a budget-slashing deal with President Joe Biden. But it’s clear the Republican speaker leading a Trump-aligned party whose hard-right flank lifted him to power is now staring down a potential crisis.
Meantime, one of the top three credit rating agencies placed the US “AAA” on “rating watch negative.” That move made by Fitch.