Pressure is building on Republicans to find a way to tackle the debt limit. With the House still clueless about who its next Speaker will be, Congress has just 10 legislative days to tackle a topic at the center of some of the most pitched fiscal battles of the last several years. The deadline was moved up Thursday by Treasury Secretary Jack Lew, who told Congress it has only until Nov. 3 to raise the government’s $18.1 trillion borrowing cap. Without a hike, the specter of a default on U.S. obligations looms large — potentially setting the stage for significant market turmoil and dire consequences of America’s financial reputation across the globe. “The first thing you’ll see is a market reaction,” said Doug Holtz-Eakin, head of the right-leaning American Action Forum and a former director of the Congressional Budget Office. “Then you’ve got dramatic impacts on consumer confidence, the world’s melting down again and they go into an economic fetal position…there’s just no good news there.” Senate Majority Leader Mitch McConnell (R-Ky.) is engaged in budget talks with the White House, but there is little optimism a deal could be strike in time to act on the debt limit.

Source: GOP’s debt limit pressure grows | TheHill

Advertisements