Both will enter their second meeting over the debt ceiling Tuesday politically vulnerable and with their hands tied.McCarthy, who is demanding spending cuts in exchange for a hike in the federal borrowing limit, strengthened his negotiating position last month by passing a debt ceiling bill through the House, proving he could unite a fractious conference around an opening offer to Biden. Yet his hold over the chamber is precarious.
“McCarthy’s boxed in simply because his margins are so small, and he just doesn't have much room to give in any direction,” GOP strategist Alex Conant told the Washington Examiner. “Biden is boxed in because his approval rating is so low, and he's less than two years from reelection.” But by painting House Republicans as Trumpian boogeymen, Biden has made compromise with them that much harder. If he moves off his no-negotiations stance, he won’t just be accused of caving — he’ll be working with the very “extremists” he says will plunge the country into a recession.McCarthy, for his part, has staked his speakership on reining in the federal budget.
Yet Biden, who as vice president helped resolve a 2011 debt ceiling stalemate that led to the country's first-ever credit downgrade, maintains the borrowing limit must not be used as a bargaining chip. But real headway may not be made until Washington, or Wall Street, really believes it’s approaching a fiscal cliff.
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