Democrats look to lift debt ceiling by targeting filibuster

Democrats are looking to suspend the debt ceiling by targeting the filibuster ahead of a mid-October deadline. CNBC's Ylan Mui reports. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi President Joe Biden on Monday blamed Republicans for blocking efforts to raise or suspend the U.S. borrowing limit and avert a dangerous first-ever default on the national debt. The president slammed the GOP for what he described as hypocritical behavior: adding nearly $8 trillion to the U.S. debt during the Trump administration and later refusing to pay for already-approved tax cuts and spending. Biden said that Republican leaders rejected a White House request that they forgo a filibuster and allow Democrats to pass legislation to raise the ceiling with a simple majority instead with a 60-vote margin. That plan would theoretically relieve any GOP senators from approving a ceiling increase while simultaneously allowing Democrats to avoid putting a borrowing limit measure into their reconciliation bill that seeks to overhaul the U.S. social safety net. Republicans “won’t vote to raise the debt to cover their own spending,” Biden said from the White House. “Not only are Republicans refusing to do their job, they’re threating to use their power to prevent us from doing our job: Saving the economy from a catastrophic event.” “I think, quite frankly, it’s hypocritical, dangerous and disgraceful,” he added. “Just get out of the way.” Senate GOP leader Mitch McConnell’s office didn’t immediately respond to CNBC’s request for comment on Biden’s remarks. The Treasury Department warned last week that lawmakers must address the debt ceiling before Oct. 18, the so-called drop-dead date when officials estimate the U.S. will exhaust emergency efforts to honor its bond payments. Economists can only guess at the consequences an unprecedented U.S. default would have, but many — including Treasury Secretary Janet Yellen — say they would be “catastrophic.” Yellen has stressed to House Speaker Nancy Pelosi, D-Calif., that diminished confidence in Washington’s ability to make good on its IOUs on time would likely spark a jump in interest rates across the economy, tarnish the dollar’s role as the globe’s reserve currency and send shockwaves through financial markets. Politicians in both parties acknowledge that the debt ceiling must be increased or risk economic calamity. Where Republicans and Democrats disagree is on how to lift the limit, with each trying to use the issue as a political cudgel. Republicans, frustrated by what they view as Democrats’ reckless spending plans, say Pelosi and Senate Majority Leader Chuck Schumer, D-N.Y., should include a ceiling suspension in their wide-ranging social policy and climate bill. Democrats are using a special process known as budget reconciliation to try to pass trillions in spending to expand and create education, health care, climate policy and other programs. Reconciliation would allow the party to pass that bill with a simple majority in the Senate versus the usual 60-vote requirement. McConnell, R-Ky., has made it clear no member of his caucus will support efforts to raise the ceiling and argues that responsibility rests with Democrats, who control Congress and the White House. The minority leader underscored that commitment in a letter sent Monday to Biden. » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC https://www.cnbc.com/select/best-credit-cards/ #CNBC #CNBCTV