Democrats and Republicans prepare a plan to avoid the debt ceiling crisis

A bipartisan group of US lawmakers is preparing a plan to defuse a looming crisis on the country’s debt ceiling by changing it from a fixed dollar amount to a percentage of gross domestic product, the group’s top Republican said Sunday. .

The proposal would replace Washington’s federal debt ceiling — currently set at $31.4 trillion — with a rule that would limit debt to a share of GDP, said Rep. Brian Fitzpatrick, Republican co-chair of the moderate Problem Solvers caucus Caucuses.

In an interview with Fox News Sunday with Democratic Problem Solvers co-chair Josh Gottheimer, Fitzpatrick said Republican House Speaker Kevin McCarthy would take the lead in negotiations with the White House on the debt ceiling. But he and Gottheimer were “putting meat” on the skeleton of their proposal to avert a crisis.

“We’re just going to offer … one possible solution for bridge construction,” Fitzpatrick said.

The US government moved closer to the legal limit on lending on Thursday. The Treasury Department has warned that its extraordinary liquidity management measures could only allow the government to pay all its bills by early June, at which point the country could risk defaulting on its obligations, including its government bonds.

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Source: Terra

Camila

Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.