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WASHINGTON \u2014 House Republicans \u201cwon\u2019t budge\u201d on demands for federal spending cuts in return for agreeing to lift the debt ceiling and avoid a U.S. payment default, GOP Rep. James Comer said.<\/p>\n
As the afederal government moved closer to breaching its statutory debt limit, lawmakers on Sunday mostly talked past each other: Republicans renewed demands for cuts and Democrats insisted the government be allowed to honor commitments made by previous Congresses.<\/p>\n
Republicans who gained control of the House in the U.S. midterm election \u201ccampaigned on the fact that we were going to be serious about spending cuts,\u201d Comer said on CNN\u2019s \u201cState of the Union.\u201d<\/p>\n
The Democratic-led Senate \u201cis going to have to recognize the fact that we\u2019re not going to budge until we see meaningful reform with respect to spending,\u201d said Comer, who heads the House Oversight Committee.<\/p>\n
California Rep. Ro Khanna typified the Democratic response, saying Republicans ought to focus their budget goals on future spending bills rather than refusing to raise the debt limit.<\/p>\n
\u201cIf you want a debate about future spending \u2014 do we want to have defense cuts, do we want to have spending cuts? \u2014 that\u2019s a legitimate debate,\u201d said Khanna, who also appeared on CNN. \u201cBut you don\u2019t debate whether you pay your debts. You don\u2019t debate the prestige of the United States.\u201d<\/p>\n
Prospective talks on raising the debt ceiling are quickly emerging as a potential global flashpoint that could threaten the stability of financial markets.<\/p>\n
U.S. Treasury Secretary Janet Yellen said last week the department will begin taking special accounting maneuvers on Jan. 19 to avoid breaching the debt limit and urged lawmakers to boost the ceiling to avert a U.S. default.<\/p>\n
She said those steps will allow the government to meet its obligations at least through early June. Economists have estimated an actual default would be likely early in the third quarter.<\/p>\n
Yellen\u2019s warning kicked off what is likely to be a prolonged political battle over U.S. fiscal policy, a showdown that could strain financial markets and elevate dangers for an economy battling inflation and already facing the risk of recession. President Joe Biden has vowed he won\u2019t make concessions to prevent Republicans from forcing a first-ever U.S. default on the debt.<\/p>\n
\u201cThe debt ceiling is no doubt going to be a knife fight,\u201d Rep. Tony Gonzales, a Texas Republican, said on \u201cFox News Sunday.\u201d<\/p>\n
Kevin McCarthy, a California Republican who was forced to negotiate with ultraconservatives in his own party before being elected House speaker this month, said Democrats were being \u201carrogant\u201d by declaring they would not accept any cuts, but expressed optimism he could negotiate with Biden.<\/p>\n
\u201cI believe we can sit down with anybody who wants to work together. I believe this president could be that person,\u201d he said on Fox News\u2019 \u201cSunday Morning Futures.\u201d<\/p>\n
\u201cI\u2019m sure he knows there\u2019s places that we can change and put America on a trajectory that we save these entitlements instead of put them into bankruptcy,\u201d he said.<\/p>\n<\/p>\n<\/p>\n<\/p>\n
Economists and bond strategists are warning of the risk of the kind of turmoil seen in 2011, when a debt ceiling standoff led to S&P Global Ratings downgrading the sovereign U.S. rating from AAA. Equities tumbled around the world and U.S. consumer confidence was hit.<\/p>\n
Ian Fisher contributed to this report.\n<\/p>\n<\/div>\n