Mr. Wyden, like other Democratic officials, did not rule out the possibility that his party unilaterally tried to raise the debt limit during a lame-duck session, using quick reconciliation rules that would prevent a Republican filibuster.
“I’m not going to take anything off the table,” said Mr. Wyden, adding, “I think you’re going to be more and more concerned, especially about the dismantling of Social Security and health care, as this isn’t like they haven’t done that.” I have told you what they are going to do.”
But that would undermine days of crucial floor time.
Other Democrats said they were more concerned about what Republicans might demand in exchange for voting to lift the debt ceiling, including the reversal of provisions in the Inflation Reduction Act, the signature climate, the tax and health care bill that would change the Democrats implemented earlier this year.
“It’s a loaded gun aimed at the U.S. economy, but luckily we have a chance to disarm it before it’s too late,” said Pennsylvania Representative Brendan Boyle, who led more than 30 Democrats by calling leaders to action. to take to address the problem. the debt ceiling by the end of the year. “If we don’t do this in November or December, we’re going to seriously regret it next year.”
Analysts are warning both sides not to escalate a short-term debt battle. Experts are partly shocked by a recent financial collapse in Britain, spurred on by a fateful government tax cut proposal, which forced the Bank of England to intervene to stabilize the UK debt market.
“The market is the way it is vulnerable,” said Donald Schneider, former chief economist for the Republicans on the Ways and Means Committee and deputy head of US policy at Piper Sandler. “We have other issues in the economy and globally that suggest now is not the time for a fight” over the debt cap.
Mr Schneider said Mr McCarthy would face strong pressure from his conference to use the cap to force at least modest budget cuts.
“If the Democrats want this to be easy,” he said, “they need to figure out ways for the Republicans to save face.”
