The Senate postponed a vote to head off a federal debt default on Wednesday as Democrats considered a Republican proposal that could potentially defuse the partisan standoff that threatens the broader economy.
Democrats called off an early afternoon vote and planned a closed-door meeting after Senate’s top Republican, Mitch McConnell, floated a plan that would buy more time to resolve the issue. McConnell proposed that his party would allow an extension of the federal debt ceiling into December.
Without congressional action to raise the $28.4 trillion debt limit, the Treasury Department has forecast that it will run out of ways to meet all its obligations by Oct. 18.
It was not clear if Democrats would accept McConnell’s offer, given that it still hinged on the Senate eventually hiking the debt limit without Republican votes through a process called budget “reconciliation.” Both President Joe Biden and Senate Majority Leader Chuck Schumer have rejected that course.
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{Matzav.com}
