With Senate Democrats and Republicans reportedly moving closer to a deal over raising the US debt ceiling and ending the partial government shutdown, President Barack Obama has called over top Congressional leaders of both parties for a meeting later on Monday.
The Obama move came as the fast-approaching Thursday deadline to avert the debt default was beginning to cause unease in the financial markets, even as Senate leaders — Democrat Harry Reid and Republican Mitch McConnell — reportedly made progress on the deal.
“We’re getting closer,” Reid told reporters after a meeting with McConnell on Monday, when perceptions that the political class might miss the deadline drove down US stocks. No details of the deal in the works were immediately available.
A couple of hours later, the White House announced that Obama and Vice President Joe Biden would meet in the afternoon with the Congressional leaders of both parties in the afternoon — Senators Reid and McConnell, House Speaker John Boehner and House Minority leader Pelosi. “With only a few days until the Government runs out of borrowing authority, the President will make clear the need for Congress to act to pay our bills, and reopen the Government,” a White House statement said.
Continuing to adopt a firm tone, the statement said: “The President will also reiterate our principles to the leaders: we will not pay a ransom for Congress reopening the government and raising the debt limit. The President continues to urge Congress to pass a bill that raises the debt ceiling and lends the certainty our businesses and the economy needs.”
The prospect of a meeting and Reid’s indications of being closer to a deal improve the mood on Wall Street, where stocks started moving up gradually. Although Reid had stated on Sunday that his talks with McConnell were “productive” and “substantive”, the absence of a deal by Monday morning had given rise to renewed pessimism.
A group of Senators of both parties who have been involved with a bipartisan effort to resolve the crisis also sounded optimistic about the outcome of the otherwise slow-moving effort.
Democratic Senator Joe Manchin asserted on Monday morning that the Senate was 70 per cent to 80 per cent close to a deal. “When should the (continuing resolution) come due, when should the debt ceiling come due, and does that give that time for the budget conference, the budget committees to sit down and work through thisIJ Those are the details that have to be worked out,” Manchin told CNN.
Republican Senator Susan Collins, who initiated the effort, still appeared to be hopeful even though Reid shot down here plan as not being balanced.Collins said both Democrats and Republicans were continuing to offer ideas.