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Biden and McCarthy's bumpy journey to a debt ceiling deal

Published 05/29/2023, 12:04 AM
Updated 05/30/2023, 06:31 AM
© Reuters. FILE PHOTO: President Joe Biden shakes hands with House Speaker Kevin McCarthy of Calif., after the State of the Union address to a joint session of Congress at the Capitol, Tuesday, Feb. 7, 2023, in Washington.   Jacquelyn Martin/Pool via REUTERS/File Ph

By Steve Holland

WASHINGTON (Reuters) - When Kevin McCarthy was struggling early this year to get enough votes from his own Republicans to become Speaker of the House of Representatives, Democratic President Joe Biden called the prolonged saga a national embarrassment, then had a little fun.

"I've got good news for you," Biden said, pointing playfully at a reporter after a speech in Kentucky. "They just elected you speaker."

During months of tense exchanges over the U.S. debt ceiling, McCarthy has also taken some swipes at Biden. Arguing that Biden should meet him to discuss his demands for lifting the debt ceiling in March, McCarthy made fun of the 80-year-old president's advanced age.

"I would bring lunch to the White House. I would make it soft food if that's what he wants. It doesn't matter. Whatever it takes to meet,” McCarthy told reporters.

In the last few weeks, however, both men have stopped the put-downs and cobbled together an agreement that will now lead to a congressional vote to suspend the U.S. debt ceiling and avoid a default that would wreak economic havoc on the country.

Like the deal they crafted, the relationship the two men forged does not look pretty but appears to have gotten the job done.

"I think he negotiated with me in good faith," Biden said of McCarthy on Sunday. "He kept his word. He said what he would do. He did what he said he would do."

The deal caps federal spending and forces more poor people to work for food aid, concessions that Democrats hate. But it also preserves much of Biden's Inflation Reduction Act and punts the next debt ceiling showdown into 2025, which Republicans hate.

STRANGE POLITICAL BEDFELLOWS

Biden, a veteran former senator from Delaware, talks about the days when both parties would often come together to solve pressing problems, and he has pushed his fellow Democrats to find across-the-aisle agreements as part of his larger attempts to re-center the country.

Although he initially called for the debt ceiling to be raised without negotiations, he ended up making compromises.

McCarthy, a 58-year-old Californian, is representative of a pugilistic style of Republican politics that took root with the "Tea Party" and blossomed under former President Donald Trump.

He came up through the party ranks pushing tax cuts for companies and reduced government spending and is now presiding over an unruly Republican Party in which radical lawmakers have threatened to force him out of the Speaker job unless he takes a hard line with the White House.

After an initial Feb. 1 meeting at the White House, an optimistic McCarthy predicted that he and Biden would find common ground and meet again soon.

Instead, a three-month stand-off ensued.

Biden refused to negotiate as the White House bet that investors and business groups would persuade Republicans to back off their threat to drive the United States into default.

Both McCarthy and Biden spent that time accusing the other of putting the U.S. economy at risk. McCarthy complained of his own isolation from the White House.

"I never had somebody from the White House reach out to me. Not one person from the administration called me. I called them," the House speaker told reporters at a Republican retreat in March.

Even after negotiations finally began in earnest, McCarthy portrayed the president as the captive of "socialists" intent on default.

"He'd rather be the first president in history to default on the debt than to risk upsetting the radical socialists who are calling the shots for Democrats right now," McCarthy tweeted last week.

But his tone changed as both sides moved toward a deal last week, expressing his respect for White House negotiators: "These are highly intelligent, highly respected on both sides. They know their work, they know their job, they know the numbers."

House Republican Patrick McHenry, a key negotiator in the talks, noted that Biden and McCarthy were "two Irish guys that don't drink" but had found a way to work together.

"What I saw in the Oval Office yesterday was a willingness to engage with each other in a sincere way - air disagreements, listen," McHenry said after one of the meetings last week.

Biden aides say the relationship between Biden and McCarthy is largely cordial and businesslike and that Biden recognizes the Speaker has a struggle on his hand presiding over the various factions within the Republican Party.

TRUMP, PELOSI CONNECTIONS

It may not help their relationship that both men were very close to the other's predecessor.

Biden idolized former Democratic House Speaker Nancy Pelosi, a woman "who I think will be considered the greatest Speaker in the history of this country," he said at his Feb. 7 State of the Union address.

McCarthy was an enthusiastic supporter of Biden's predecessor, Republican Donald Trump, and a frequent flyer on Air Force One when Trump was president.

© Reuters. FILE PHOTO: House Speaker Kevin McCarthy (R-CA) sits for debt limit talks with U.S. President Joe Biden in the Oval Office at the White House in Washington, U.S., May 22, 2023. REUTERS/Leah Millis/File Photo

He was among 147 Republicans who voted to overturn Biden's 2020 election win over Trump's claims of election fraud, although he eventually acknowledged Biden as the legitimate president.

He criticized Trump over his failure to rein in his own supporters during the Jan. 6, 2021, attack on the U.S. Capitol, but remains in touch with him.

Latest comments

What did Corn pop have to say about this? Not corn poop brandon the corn pop that was a bad dude.
Bumpy journey to ensure everyone profited from the stock market before kiss and hug agreement
Corn pop still hiding in his basement again....
All R wing comments Deleted here!
Common left political bias from Reuters/AP: - Rs support "forcing more poor people to work for food aid": If you are an American, you are not "poor" compared to others in the world.  There are many opportunities.   Rs want to require people dependent &/or lazy receiving free things from the gov to go get work. Socialist Ds prefer to give away money in exchange for votes like forgive all student loan debt = make other citizens pay for your education - "Biden's Inflation Reduction Act which Rs hate": it is deceptive & actually increases inflation. - "pugilistic style of R politics" :more slander  No mention of the "pugilistic" style of Antifa riots condoned/encouraged by D politicians. - McCarthy "is now presiding over an unruly R Party in which radical lawmakers have threatened to force him out of the Speaker job": No mention of very unpopular Biden among his own "radical" D party members who have been "unruly" in their disappointments with him & don't want him to run again.
Blah, blah, blah. Inflation has declined since passage of the Inflation Reduction Act. Another knuckledragger trying to justify his biases at odds with the facts.
the fed lowered inflation you partisan shill.
Pay attention, Bill, you milquetoast nobody: Jo Riley's claim was that the IRA increased inflation. I merely pointed out that is wrong... as you agree.
Consumer spending is a key driver of economic growth.
Commodities play a significant role in the global economy.
The bIg guY was in hidddding for niNty oNe dAys !
Joe was in Hiding for 91 days... lol
Can't you lib fArts ever write an articel without criticizing President D. j tru Mp? You lousy joke journalist..you couldn't even say his title in this article President Trump
Republicans should have let it default
there wouldn't have been a default a lawyer for one of the gov. unions pointed out using a supreme court precedent that the debt ceiling was unconstitutional - the lawsuit was so on point the GOP folded in 2 days making the best out of the situation knowing that to push it would be to look really bad to voters - it was finished on weds and the fine tuning took place before the weekend - now you just have the whining
they still will
yeah it was some meaningless lawsuit that forced McCarthy's hand, not the June 4th deadline. maybe if you keep repeating that point, it will magically become true
I'm really glad they can be so civil and polite while ruining more American lives while they pander around. Republicans should wear capes - they ruin lives and hate Americans.
It's still a travesty we didn't get Hillary for COVID. The three best countries to handle COVID were Australia, new Zealand and south Korea - all lead by women. republicans hate Americans so we got trump - they would have to hate you to even offer that guy up.
Australia was lead by a male, Scott Morrison.
 And if you mention Jacinda Ardern's name in NZ, you'd better duck!
maybe it was Mercle in Germany - not sure anymore.
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