Speaker of the House Kevin McCarthy is scheduled to speak at the New York Stock Exchange on Monday morning regarding the ongoing debt ceiling negotiations. As the federal government approaches its limit of meeting financial obligations, Kevin McCarthy’s speech is timely. Failure by the divided Congress to take action would result in a historic default, which would have severe repercussions on the US and global economies.
McCarthy will emphasize why any increase to the debt cap must be paired with spending cuts. This coincides with the unveiling of a new Republican proposal by McCarthy, which aims to lift the ceiling until May 2024, while also slowing spending growth over the next decade, rolling back student debt relief and federal regulations, and boosting domestic energy production.
McCarthy is drawing parallels between his speech and President Ronald Reagan’s 1985 visit to the NYSE, where he shared his vision for economic growth. However, the comparison between McCarthy’s speech and Reagan’s visit is not well-received by the White House.
Andrew Bates, Deputy Press Secretary, criticized Kevin McCarthy’s proposal, accusing him of putting the economy and the retirement of Americans at risk.
Bates sated, “Speaker McCarthy is holding the full faith and credit of the United States hostage, threatening our economy and hardworking Americans’ retirement. A speech isn’t a plan, but it’s clear that extreme MAGA Republicans’ wish lists will impose devastating cuts on hardworking families, send manufacturing overseas, take health care and food assistance away from millions of people, and increase energy costs — all while adding trillions to the debt with tax cuts skewed to the super-wealthy and corporations.”
“Make no mistake, the longer President Biden waits to come to an agreement, the higher the probability of his administration bumbling into the first-ever default in our nation’s history,” McCarthy wrote on Twitter prior to his speech.
