Schumer, Pelosi to meet with Biden to discuss reconciliation, infrastructure

Debt ceiling debate is ‘game of chicken’: Expert

Committee for a Responsible Federal Budget President Maya MacGuineas discusses the issues that come with the debate over the debt ceiling, from financial uncertainty to a loss of credibility for the U.S.  

House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer will meet with President Biden on Wednesday to discuss both the infrastructure bill and the $3.5 trillion reconciliation package that has been the source of contention in Washington, a source told Fox Business.

Republicans have blamed Democrats for ignoring them when it comes to legislation because they control both chambers of Congress and the White House. Sen. Mitch McConnell, the Senate minority leader, said his party will not come to their aid when it comes to the debt ceiling.

WHAT IS THE DEBT CEILING?

"Since Democrats decided to go it alone, they will not get Senate Republicans’ help with raising the debt limit," he said, referring to the $3.5 trillion reconciliation package, on Monday. "I’ve explained this clearly and consistently for over two months. We do not have divided government. Democrats do not need our help. They have every tool to address the debt limit on their own."

WH SOUNDS ALARM ON DEBT CEILING, WARNS MEDICAID, FOOD STAMPS AT RISK

The House of Representatives voted Tuesday night to pass a continuing resolution to fund the government through Dec. 3 and raise the $28 trillion debt ceiling.

The package would provide stopgap money to keep the government funded to Dec. 3 and extend borrowing authority through the end of 2022. It includes $28.6 billion in disaster relief for the aftermath of Hurricane Ida and other extreme weather events, and $6.3 billion to support Afghanistan evacuees in the fallout from the end of the 20-year war.

The resolution will need the support of at least 10 Republicans to pass in the Senate or there could be a government shutdown. Pelosi and Schumer's offices did not immediately respond to an after-hours email from Fox Business.

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Mark Zandi, the chief economist at Moody’s Analytics, warned if lawmakers allow a federal debt default "this economic scenario is cataclysmic," the Associated Press reported.

In a report being circulated by Democrats, Zandi warned that a potential downturn from government funding cutbacks would cost 6 million jobs and stock market losses would wipe out $15 trillion of household wealth.

Fox News' Hillary Vaughn and the Associated Press contributed to this report

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