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Is Vice President Joe Biden’s “Gang of Seven” nearing the homestretch of a debt ceiling deal, or is its July 4th target a mirage?
A confident Biden said after a two-hour closed-door meeting Tuesday that he expects the group to reach a compromise before the July 4th recess, which would cut federal spending "well beyond" $1 trillion and raise the federal debt ceiling.
“We’re down to the really hard stuff,” Biden told reporters inside the Capitol. “Everyone is still in the game…I am convinced it ain’t over until it’s over.”
The Biden gang has been attempting to break the stalemate between Republican and Democrats, especially freshman GOP membersbacked by the Tea Party. However, negotiating a deficit reduction package that includes major federal spending cuts and an increase to the $14.3 trillion federal debt ceiling has been a challenge. Republicans are demanding that the same level of spending cuts must match an increase to the debt ceiling. Meanwhile, the Treasury says Congress must act before August 2nd, or the U.S. will have to stop making some payments, which could include interest on thedebt – a technical default – creating catastrophic consequences for the economy.
Federal Reserve Chairman Ben Bernanke also warned Republicans on Tuesday that demanding spending cuts in exchange for any deal to raise the debt limit would backfire and worsen the economy. House Republicans dismiss those claims, and accuse the administration of “scare-mongering.”
Ranking member of the House Budget Committee Chris Van Hollen, D-Md., said to reporters after the meeting that the group focused on discretionary spending cuts. He also said the group will move on and discuss budget triggers at its next meeting planned for this morning.
“We are getting to some of the tougher issues and the fact is that we are still all friends and talking around the table,” Van Hollen added, “so that’s the good news.”
The Biden talks comprise a group of seven Republican and Democratic lawmakers, also including Senate Minority Whip Jon, R-Ariz., House Majority Leader Eric Cantor, R-Va., Senate Finance CommitteeChairman Max Baucus, D-Mont., Rep. Jim Clyburn, D-S.C., and Senate Appropriations Chair Daniel Inouye, D-Hawaii. Tuesday accounted for the group’s seventh negotiating session.
A confident Biden said after a two-hour closed-door meeting Tuesday that he expects the group to reach a compromise before the July 4th recess, which would cut federal spending "well beyond" $1 trillion and raise the federal debt ceiling.
“We’re down to the really hard stuff,” Biden told reporters inside the Capitol. “Everyone is still in the game…I am convinced it ain’t over until it’s over.”
The Biden gang has been attempting to break the stalemate between Republican and Democrats, especially freshman GOP membersbacked by the Tea Party. However, negotiating a deficit reduction package that includes major federal spending cuts and an increase to the $14.3 trillion federal debt ceiling has been a challenge. Republicans are demanding that the same level of spending cuts must match an increase to the debt ceiling. Meanwhile, the Treasury says Congress must act before August 2nd, or the U.S. will have to stop making some payments, which could include interest on thedebt – a technical default – creating catastrophic consequences for the economy.
Federal Reserve Chairman Ben Bernanke also warned Republicans on Tuesday that demanding spending cuts in exchange for any deal to raise the debt limit would backfire and worsen the economy. House Republicans dismiss those claims, and accuse the administration of “scare-mongering.”
Ranking member of the House Budget Committee Chris Van Hollen, D-Md., said to reporters after the meeting that the group focused on discretionary spending cuts. He also said the group will move on and discuss budget triggers at its next meeting planned for this morning.
“We are getting to some of the tougher issues and the fact is that we are still all friends and talking around the table,” Van Hollen added, “so that’s the good news.”
The Biden talks comprise a group of seven Republican and Democratic lawmakers, also including Senate Minority Whip Jon, R-Ariz., House Majority Leader Eric Cantor, R-Va., Senate Finance CommitteeChairman Max Baucus, D-Mont., Rep. Jim Clyburn, D-S.C., and Senate Appropriations Chair Daniel Inouye, D-Hawaii. Tuesday accounted for the group’s seventh negotiating session.
