White House official hints at possible short-term debt deal to avert default

Shalanda Young, Director of the Office of Management and Budget (OMB), told reporters on Thursday that a short extension of the debt ceiling was still possible to avoid default amid the standoff between House Republicans and President Joe Biden over raising the limit.

The Hill reported that Young had said such a deal was possible in response to a question from a reporter about a short term agreement.

I’m sure that one of the issues we will need to discuss is the length. She said that she would not be taking anything off the table, but expressed her “hope” that we could find a way to avoid default.

She went on to describe the current standoff in terms of “political brinksmanship,” and “made-up drama.”

She said, “I believe that the majority of Congress members know this is the wrong way to go.” “Look, the partisan process has played out. Now we need to pivot towards a bipartisan approach.”

Her comments came ahead of the meeting that Biden will have with congressional leaders on Tuesday to discuss a solution to the budgetary impasse.

Janet Yellen, Treasury Secretary, resorted to “extraordinary” measures to keep the federal government afloat after reaching its debt ceiling of $31.38 trillion in January this year. She warned, however, that the situation would become untenable by the end of June and urged legislators to resolve the issue.

Republicans, while Democrats advocated a simple increase in the spending limit for the country, have paired any increase with provisions that limit spending and deal with the national debt. In April, the Republican-controlled House passed a bill to extend the federal debt ceiling for an additional year and limit the growth in federal spending. Joe Biden, the president of the United States, has said he would veto any plan that reaches his desk.