Cyprus Mail
AmericasWorld

Deal to resolve fiscal crisis stalls in U.S. Congress

US President Barack Obama will now shift his attention to the Senate Republicans

Hopes for a resolution of Washington’s fiscal crisis in the next day or two faded on Capitol Hill on Saturday, as President Barack Obama’s efforts to reach a deal with Republicans in the House of Representatives sputtered.

The focus has now shifted to Senate Republicans’ ideas for reopening the government and raising the government’s borrowing authority, which runs out on Oct. 17.

“I guess they’re (the White House) talking to the Senate now,” a dejected House Appropriations Committee Chairman Harold Rogers, a Republican, told Reuters.

“There is no deal; no negotiations going on,” House Speaker John Boehner told a meeting of House Republicans, according to Representative Richard Hudson.

The White House had expressed deep reservations with Boehner’s plan for a debt ceiling increase that would have extended only to Nov. 22 and other demands that would have required a series of negotiations to continue under the threat of default and government shutdown.

Meanwhile, there appeared to be growing interest in a plan written by Republican Senator Susan Collins that would fund government operations for another six months at their current level and extend Treasury Department borrowing authority through Jan. 31.

Without action by Congress, the United States could be in default by Thursday, when the Treasury warns its borrowing authority would basically be exhausted.

Many House members were heading to their home districts, having been informed that there would be no votes later on Saturday, Sunday or before Monday evening.

The complication has deflated some of the optimism about a quick agreement coming as early as this weekend.

“I was optimistic yesterday morning,” David French, the chief lobbyist for the National Retail Federation, told Reuters on Saturday. “I’m a little less optimistic today and so are folks I’ve talked to” on Capitol Hill.

Companies and trade associations have been stepping up their efforts on Capitol Hill as the debt ceiling deadline approaches.

Retailers are particularly concerned about going into a holiday season with debt ceiling jitters hanging over the economy.

Beyond that, French said: “They’re concerned about Washington. They’re concerned about the level of dysfunction. Our members do not like lurching from crisis to crisis without hope of a resolution.”

Related Posts

Elon Musk’s Tesla tweets are debated as trial nears end

Reuters News Service

EU agrees price caps on Russian oil products

Reuters News Service

Longer-range rockets included in $2 bln pledge for Ukraine

Reuters News Service

UN rights rapporteur urges release of detained Afghan education activist

Reuters News Service

Israeli troops shoot Palestinian man in West Bank

Reuters News Service

Self-proclaimed bitcoin inventor’s $2.5 bln lawsuit can go to trial

Reuters News Service

1 comment

Comments are closed.