U.S. President Joe Biden, who just announced his reelection campaign for president, delivers remarks at North America’s Building Trades Unions Legislative Conference at the Washington Hilton, Washington D.C, April 25, 2023.
Leah Millis | Reuters
WASHINGTON — President Joe Biden sounds optimistic about the odds of reaching a deal with Republicans to raise or suspend the debt limit in time to avoid economic fallout from even a potential U.S. debt default.
“I really think there’s a desire on their part, as well as ours, to reach an agreement, and I think we’ll be able to do it,” Biden told reporters Sunday in Delaware. As to his state of mind, he said, “I remain optimistic because I’m a congenital optimist.”
Biden also characterized the talks underway between White House liaisons and congressional aides as “a negotiation,” a notable choice of words after months of insisting that he would not “negotiate” over the debt limit. The president and the top four congressional leaders plan to meet again about the debt ceiling Tuesday.
“I’ve learned a long time ago, and you know as well as I do: It never is good to characterize a negotiation in the middle of a negotiation,” Biden said in response to a question about the status of the talks.
Asked about whether he would consider a Republican proposal to stiffen work requirements for social safety net programs, Biden did not dismiss the idea out of hand, as several high-profile Democrats have done in recent weeks.
Instead, he pointed to his own Senate record of voting for welfare work requirements in the 1990s.
“I voted for tougher aid programs, that’s in the law now, but for Medicaid it’s a different story,” he said. “And so I’m waiting to hear what their exact proposal is.”
A Republican bill passed last month included stricter work requirements not only for Medicaid, but for the Temporary Assistance to Needy Families (TANF) funds, as well as SNAP food stamps. The fact that Biden roped off Medicaid, but not TANF and SNAP, offered a window into where Democrats might be willing to give a little.
Biden also said he planned to travel to Japan later this week to attend the G-7, a trip he had previously said he could attend virtually if debt limit talks required him to remain in Washington.
Dow futures rose Monday morning on the hopes that a deal would be reached to avoid default and reassure global markets about the safety and stability of the U.S. dollar.
This is a developing story, please check back for updates.