Treasury official denies Biden delayed negotiations as debt default approaches.

Debt Ceiling Negotiations: Is Biden Waiting Too Long?

Pressing the Issue

CNN anchor Dan Bash didn’t hold back when he questioned Treasury Deputy Secretary Wally Adeyemo about President Joe Biden’s handling of the debt ceiling negotiations. With the threat of a historic default looming, Bash asked why Biden waited until now to start negotiating spending cuts to avert disaster.

Dismissing the Premise

Adeyemo pushed back, arguing that Biden proposed a budget in March to reduce the debt by nearly $3 trillion over the next decade. He also noted that Republicans passed their own plan in April, and Biden invited congressional leaders to discuss “fiscal policy.” While a second meeting was postponed, Adeyemo maintained that the conversations were “constructive.”

A Clash of Stances

Biden and Democrats are advocating for a “clean” bill to raise the debt ceiling, while Republicans want to discuss concessions on spending cuts. House Speaker Kevin McCarthy tweeted that “the only responsible way to raise the debt ceiling is to limit reckless spending and get inflation under control.”

The Clock is Ticking

The Congressional Budget Office warned that the government may not be able to pay all of its debts by the first two weeks of June if the debt limit remains unchanged. Adeyemo stressed the urgency of the situation, saying that a default could lead to a massive recession and cost millions of jobs.

A Stand-Alone Issue

Adeyemo maintained that avoiding a default should be handled as a stand-alone issue, separate from fiscal policy negotiations. As talks continue, time is running short to prevent a potential disaster.