Senate Majority Leader Chuck Schumer on Monday called on Republicans to unveil the spending cuts they’re demanding in exchange for raising the U.S. debt limit, saying the GOP must put ideas before voters.
“If Republicans are talking about draconian cuts, they have an obligation to show Americans what those cuts are and let the public react,” the New York Democrat said in a floor speech.
House Speaker Kevin McCarthy and other Republicans have demanded combining cuts to spending with raising the debt limit.
“Why would we sit back and be so arrogant to say, ‘No, there’s no waste in government?’” the California Republican recently told Fox News, without offering specifics on cuts.
Now read: U.S. runs up against its debt limit, so Treasury starts using ‘extraordinary measures’: Here’s what that means.
The Biden administration has refused to negotiate over the debt limit, saying a non-conditional increase is essential to protecting the country’s credit rating and preventing dire financial consequences. Schumer called Republicans’ approach to the issue “dangerous” and “destabilizing” in his remarks on Monday.
The Treasury Department last week began using what are known as extraordinary measures to prevent default, with Secretary Janet Yellen telling lawmakers it’s unlikely they’d be exhausted before June.
Brinksmanship over the debt limit is beginning to intensify between congressional Republicans and the Biden White House, though there is little sign of panic in financial markets. On Monday, the three main U.S. stock indexes
all closed higher, as the Federal Reserve was expected to slow interest-rate increases at its next meeting and investors looked forward to corporate earnings.
Also read: Why the U.S. debt-ceiling is already worrying stock and bond investors