Politics
Obama and Republicans struggle to break fiscal deadlock
The newfound optimism bolstered markets. U.S. stocks edged higher early on Friday following the biggest rally since the first trading day of the year.
Time was running short, with the partial government shutdown in its 11th day and less than a week to go before the Treasury Department exhausts its ability to borrow money to pay the government’s bills.
Any deal that is struck by leaders could face a revolt from rank-and-file conservatives in both the House and Senate, risking a potential U.S. default that Obama and economists have warned could lead to economic chaos.
Texas Senator Ted Cruz, a Tea Party favorite who has been a leader of conservatives demanding delays or defunding of the healthcare law before they will approve a budget deal, was unapologetic at a conference of conservative activists.
The impending fiscal deadline is particularly problematic in the Senate, where procedural delays can slow legislation for up to a week – about the time remaining before borrowing authority runs out, according to Treasury Secretary Jack Lew.
Senate Democratic Leader Harry Reid said he would hold a vote on Saturday on a measure giving a one-year debt ceiling increase without conditions, and criticized Republican calls for a shorter extension of the borrowing authority.
The movement from Republicans on Thursday came after a flurry of new opinion polls showed them taking the blame for the government shutdown, that began with the start of the new fiscal year on October 1st.
