Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

McConnell under fire for debt-ceiling as Democrats claim victory

Published 10/08/2021, 01:29 PM
Updated 10/08/2021, 05:56 PM
© Reuters. U.S. Senate Republican Leader Mitch McConnell (R-KY) walks to his office after it was announced that the U.S. Senate reached a deal to pass a $480 billion increase in Treasury Department borrowing authority, at the U.S. Capitol in Washington, U.S., Octobe

By David Morgan

WASHINGTON (Reuters) - Senator Mitch McConnell, long known as the Republican mastermind in Congress, lost support among some members of his own party this week after offering Democrats a temporary deal to avert a cataclysmic U.S. credit default and safeguard the Senate's endangered super-majority rule.

The 79-year-old Kentucky Republican, who had insisted for months that Democrats use a complex procedure to raise the debt ceiling on their own, offered a temporary fix to extend it into early December after the U.S. Treasury said it would run out of money to pay its bills by Oct. 18.

Democrats readily agreed and declared victory https://www.reuters.com/world/us/us-senate-democrats-republicans-haggle-over-short-term-debt-fix-2021-10-07 after the agreement passed the Senate by a 50-48 majority on Thursday.

"Somebody got to McConnell and finally said: 'Hey Mitch, you know what, are you really prepared to sink the entire American economy and the global economy with your obstinacy?'" Senator Bernie Sanders, an independent who caucuses with Democrats, told reporters on Friday.

While the deal simply postpones the same battle, McConnell's decision to relent raised questions about whether he had put himself at a disadvantage in future confrontations.

"Republican leadership blinked. I think that was a mistake," Republican Senator Ted Cruz told reporters on Thursday.

But Republican strategists and aides said the outcome could give the party increased leverage against President Joe Biden's multitrillion-dollar social spending package, which Democrats hope to pass in the coming weeks.

Republicans believe the high-stakes debt-ceiling debate could make it harder for Democrats to find common ground on the legislation.

"Forcing Democrats to punt the debt ceiling into the (Biden agenda) fight may prove to be very good strategy," said Republican strategist Alex Conant.

A Republican aide credited McConnell's tactics with safeguarding the "filibuster," the super-majority rule that requires 60 votes to advance most legislation in the 100-seat chamber. That has enabled Republicans to block many Democratic initiatives.

© Reuters. U.S. Senate Republican Leader Mitch McConnell (R-KY) walks to his office after it was announced that the U.S. Senate reached a deal to pass a $480 billion increase in Treasury Department borrowing authority, at the U.S. Capitol in Washington, U.S., October 7, 2021. REUTERS/Leah Millis

In the short term, McConnell faces pressure from Republican allies of former President Donald Trump, who has repeatedly called on the party to oust McConnell from his position.

Senator Lindsey Graham (NYSE:GHM) denounced McConnell's agreement as a "complete capitulation" without naming the leader, adding: "We had a strategy and we abandoned it."

Latest comments

all those republican critics are out to takeover senate leader post from Mitch.. don't really care for the debt ceiling
Republicans are weaklings
They call it Victory. They will long gone the time we need to pay back all the Debt . Why do they care?
Ted is stooopid
When it comes due in december no one will remember this moment and the democrats will blame republicans again for it all… even though they have the votes to fix this now
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.