Pelosi knocks White House fallback plan on debt limit, putting pressure on late-stage budget talks

Just a few days before Congress meeting ends for the rest of the summer, Nancy Pelosi and Steven Mnuchin spoke on Monday while trying to broker a debt and plan the budget deal. Just when Pelosi, the Speaker of the House disclosed a fallback plan, chances of Congress raising the debt ceiling became more evident.

This increase in the debt ceiling will take place for a short time period only if a budget agreement has not been finalized by the end of next week. Pelosi, who is a Democrat from California, stated that the idea of increasing the debt ceiling without planning an agreement with the budget is highly unacceptable. Therefore, it cannot be passed in the House of the Representatives.

The Treasury Secretary, Mnuchin counteracted Pelosi publicly by asking what would happen to the budget ceiling if it wasn’t raised before the lawmakers went on their summer breaks. He said that there are chances of the Treasury to run out of money while paying all the bills of the government by September. He requested Congress to act accordingly before any such situation of crisis arises.

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