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Schumer sets U.S. debt ceiling vote for Wednesday as tensions rise

The Senate will vote on Wednesday on a Democratic-backed measure to suspend the U.S. debt ceiling, a key lawmaker said on Tuesday, as partisan brinkmanship in Congress risks an economically crippling federal credit default.

Senate Majority Leader Chuck Schumer said that senators will hold a procedural vote on the bill - opposed by Republicans - to suspend the borrowing limit through the end of 2022. Treasury Secretary Janet Yellen has told lawmakers that the government would exhaust its borrowing capabilities by about Oct. 18 if they do not act.

U.S. Senate to vote on debt ceiling, Republicans say they will oppose

President Joe Biden's Democrats planned a Wednesday vote in the Senate to suspend the U.S. debt ceiling, setting up yet another confrontation with Republicans that risks an economically crippling federal credit default.

The effort seemed destined to fail as the chamber's top Republican, Mitch McConnell, said on Tuesday that members of his party would block the vote as they have already done twice. McConnell has urged Democrats to raise the debt ceiling on their own using a more convoluted approach that Democrats have dismissed as unworkable.

"They have the time to do it. And the sooner they get about it, the better," McConnell said at a news conference.

White House to tap business leaders to push Republicans on debt ceiling - source

The White House is asking business leaders to meet with President Joe Biden on Wednesday about the need to raise the U.S. debt ceiling, according to a person familiar with the plans.

The proposed meeting is part of a broader White House strategy to pressure Republicans to vote for a debt ceiling increase or allow Biden’s Democrats to increase it alone, without throwing procedural hurdles in the way.

The Treasury Department has estimated that it has until roughly Oct. 18 for Congress to raise the government’s $28.4 trillion borrowing limit or risk a debt default that could spark potentially catastrophic consequences for the world’s largest economy.

Reference: CNBC, Reuters