S&P announced Monday that it was revising its take on U.S. debt from “stable” to “negative,” causing sharp declines in the stock market. The ratings service said it was doing so because it was skeptical that top officials in Washington could come together on longer-term deficit reduction.
Some top Republicans in Washington have said that the debt ceiling will not be raised unless a proposal is paired with substantial deficit-reduction measures.
Still, Treasury Secretary Timothy Geithner said over the weekend that top Republican lawmakers had told the administration that they were “not going to play around” with the debt ceiling. Geithner’s department has said it expects the government to hit the ceiling around the middle of next month, and that if Congress does not raise the limit, the U.S. would default on debt starting around July 8.
But Rep. Paul Ryan
Paul Davis RyanMcCarthy faces pushback from anxious Republicans over interview comments Pelosi and Trump go a full year without speaking Jordan vows to back McCarthy as leader even if House loses more GOP seats MORE (R-Wis.), the House Budget Committee chairman, signaled that he had not heard those sorts of statements from GOP leadership in his chamber.
