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      Senate Democrats highlight ‘terrible choice’ of Republicans’ debt ceiling plan

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      Senate Democrats held a hearing on Thursday to lambaste House Republicans’ proposal to raise the US government’s borrowing limit in exchange for spending cuts, as economists testified that a federal default would bring disastrous and decades-long consequences.The hearing came a week after House Republicans narrowly passed the Limit, Save, Grow Act to raise the debt ceiling until May 2024. The legislation, championed by the House speaker, Kevin McCarthy, would also roll back federal discretionary spending to 2022 levels and cap annual increases at 1%.Mocking the bill as the “Default on America Act”, Democrats warned that the legislation would result in devastating cuts to veterans’ benefits, childcare access and infrastructure funding.“Republicans’ dangerous bill proposes a terrible choice: default on our financial obligations, causing widespread pain and wrecking our economy, or gut basic federal programs essential to our economic strength, causing widespread pain and wrecking our economy,” said Senator Sheldon Whitehouse, the Democratic chair of the Senate budget committee. “It is a false and unnecessary choice.”Republicans on the committee countered that the House bill should be interpreted as an “opening bid” to kickstart negotiations with Joe Biden, who has repeatedly called on Congress to pass a “clean” bill raising the debt ceiling without any strings attached. Biden has invited the top four congressional leaders to a meeting at the White House next week to discuss the debt ceiling.“I hope when the president sits down with the speaker, he will bring an open mind and a serious counteroffer,” said Senator Chuck Grassley, the Republican ranking member of the budget committee. “The longer the president spends dragging his feet and putting off negotiations, the closer President Biden brings us to the first ever federal default in US history.”Three economists testified to the committee that a default would prove calamitous for the country and global markets, causing America’s unemployment rate to rise and its gross domestic product (GDP) to tumble.Dr Mark Zandi, chief economist of Moody’s Analytics, predicted a “severe recession” in the US if lawmakers do not address the debt ceiling. The treasury secretary, Janet Yellen, sent a letter to congressional leaders on Monday informing them that the US government would be unable to cover its financial obligations as early as 1 June.Zandi added that this moment is “an especially inopportune time to have a political debate over the debt limit” because the current risk of an American recession is “uncomfortably high”. That risk heightens the danger of enacting House Republicans’ bill, Zandi argued.“It entails significant cuts to government spending … right at the point in time when the economy is going to be most vulnerable to going into recession,” Zandi said.But all three economists also agreed that the “unsustainable” trajectory of America’s debt must be met with urgency by policymakers.“We are sitting on a ticking timebomb,” said Brian Riedl, a senior fellow at the conservative thinktank Manhattan Institute. “Congress should be working diligently to avert an otherwise inevitable debt crisis, and raising the debt limit has historically been one opportunity to address the underlying debt problem.”Democrats expressed openness to amending the federal budget for the next fiscal year, which begins in October, but they emphasized that such a discussion must be separated from the immediate need to address the debt ceiling.“If we want to have a real discussion about revenues and spending, that’s great,” said Senator Debbie Stabenow, a Democratic member of the committee. “Don’t default. But let’s have that debate about what’s fair for the majority of American people.”Biden has similarly invited a bipartisan conversation on budgetary reform, but he has steadfastly rejected Republican efforts to tie the debt ceiling to government spending negotiations.“America is not a deadbeat nation,” Biden said on Monday. “We pay our bills, and we should do so without reckless hostage-taking from some of the [‘Make America Great Again’] Republicans in Congress.”Whitehouse noted Senate Democrats have introduced a two-page bill raising the debt ceiling until December 2024, ensuring the issue would not be revisited until after the next presidential election, but such a bill seems unlikely to pass the Republican-controlled House. Democrats in the House have simultaneously launched a long-shot bid to pass a clean debt ceiling bill through the lower chamber, but the odds of five of their Republican colleagues joining that effort seem slim to none.As the clock ticks down, lawmakers are running out of time to avoid catastrophe, Zandi testified.“We are on a certain unsustainable fiscal path. We need both additional tax revenue and we need spending restraint. Both of those things need to happen. But we can’t do that in the current environment,” Zandi told senators. “This is not the time to do it. We need to end this drama as quickly as possible.” More

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      Bernie Sanders unveils plan for $17-an-hour US minimum wage

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      Bernie Sanders on Thursday announced a proposal to raise the federal minimum wage to $17 an hour, saying the potent inflation Americans have faced over the past two years makes it necessary for the government to institute higher wages for workers.Sanders intends to next month formally introduce legislation raising the minimum wage over a five-year period to a level $2 higher than the $15 an hour Joe Biden and many Democrats have pushed for in recent years. But there is no sign of Republicans wavering in their opposition to the proposal.“As a result of inflation, $15 an hour back in 2021 would be over $17 an hour today,” said Sanders, an independent senator who caucuses with the Democrats. “In the year 2023, in the richest country in the history of the world, nobody should be forced to work for starvation wages. That’s not a radical idea. If you work 40-50 hours a week, you should not be living in poverty. It is time to raise the minimum wage to a living wage.”Congress has not approved a minimum wage increase since raising the level to $7.25 an hour in 2009, where it remains for workers in 20 states. Voters in several states and cities across the country have approved raising their minimum wage to $15 an hour, but progress on a national increase has remained elusive.In 2021, Democrats attempted to raise the minimum wage to $15 an hour as part of a large spending bill intended to help the US economy recover from the Covid pandemic, but the effort failed, in part due to the defections of eight Democratic lawmakers.Biden later that year signed an executive order raising the minimum wage for federal contractors, which affected as many as 390,000 workers, but the president has not said if he supports the increase to $17 an hour. A White House spokesman did not respond to a request for comment.In the two years since, Americans have faced the highest inflation since the 1980s, with consumer price increases hitting an annualized peak of more than 9% in June 2022, though they have moderated in recent months. While workers’ wages also increased over that period in part because of a tight labor market, the pace has not kept up with inflation.“As a home healthcare worker, I make just $12 an hour. I worked in fast food for over 30 years and I never, never made $15 an hour. And now $15 isn’t even enough for what we’re going through today,” said Cookie Bradley, a founding member of the Union of Southern Service Workers, who joined Sanders in the announcement.Although Sanders was supported by the heads of major labor groups the AFL-CIO and Service Employees International Union (SEIU), he said little about how he planned to overcome objections both from Republicans and reluctant Democrats.He said: “This is a popular issue. I don’t think there’s a state in the country where people do not believe we should raise the minimum wage. I would hope that every member of Congress understands that and there will be political consequences if they don’t.”Republicans, who took control of the House of Representatives this year, have shown at best lukewarm enthusiasm for a minimum wage rise, and have instead focused on trying to convince Americans that Biden is to blame for the rapid inflation. In 2021, Republican senators introduce two proposals, one that would raise the federal minimum wage to $10 an hour, and another that would give a tax credit for workers who make less than $16.50 an hour. Neither went far in the Senate, which Democrats currently control.The SEIU president, Mary Kay Henry, said her millions of members would be keeping an eye on which lawmakers support Sanders’s proposal.“We are going to be watching any congressperson, senator or in the House, that dares to say that they are not going to vote yes for Senator Sanders’ bill, because they need to be held accountable at the ballot box,” Henry said. More

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      Federal Reserve increases interest rates by a quarter point to 16-year high – as it happened

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      From 6h agoThe Federal Reserve is set to raise interest rates this afternoon, with an announcement coming at 2pm ET from the central bank after its most recent board meeting. Analysts expect the Fed will raise rates by a quarter point, which will bring rates up to 5% to 5.25%. This would be the central bank’s 10th interest rate increase since March 2022, when rates were at zero.The interest rate increase will come at what in hindsight may seem like an inflection point for the economy. Inflation is down, consumer spending has flattened and growth in the job market is starting to slow down, but Fed officials, especially Fed chair Jerome Powell, have been stringent on getting inflation down to their target of 2%. Inflation in March was 5%, the lowest it’s been since 2021, but still quite far from 2%.Analysts and economists will be closely watching Powell’s press conference at 2.30pm, where he will discuss the direction Fed staff see the economy going, giving hints as to whether even more interest rate hikes are to come or whether the Fed will end its rate-hike campaign.Here’s a quick summary of everything that’s happened today:
      The Federal Reserve increased interest rates by a quarter point, bringing rates up to 5% to 5.25%. Fed chair Jerome Powell said that Fed officials no longer anticipate more hikes, but will monitor economic data to see if they are necessary in coming months. The stock market dipped slightly after the Fed’s announcement.
      The debate over the debt ceiling continued today, with news that Senate majority leader Mitch McConnell will keep himself out of the specific of negotiating talks and hints that senators Joe Manchin and Kyrsten Sinema are breaking from Dems and looking to take Senate negotiations seriously.
      2024 is already gearing up: Joe Biden released his second TV ad since launching his campaign last week, while US rep. Colin Allred of Texas announced his bid to unseat Texas senator Ted Cruz. In Nevada, Jim Marchant, an election denier and staunch supporter of Donald Trump, also announced a Senate big.
      We’ll be closing this blog for today. Thanks for reading.Democratic senator Raphael Warnock from Georgia said that his two young kids were on lockdown at school because of the shooting in midtown Atlanta.“They’re there. I’m here, hoping and praying they’re safe,” he said on the Senate floor. “Thoughts and prayers are not enough.”One person has been confirmed dead and at least four injured after a gunman opened fire in a building in midtown around 12.30pm ET. Police said they are still searching for a suspect.The Washington Post just published a cheery report that the White House and lawmakers on Capitol Hill technically have just six working days together before the US government potentially defaults on its debt on 1 June.With the House and Senate in session on different days, and Biden making international trips for the G7 summit in Japan and another “Quad” meeting with Australia, Japan and India in Australia, the legislative and executive branches are scheduled to have just six more days together to figure out the debt ceiling.Of course, negotiations can take place even when a chamber is not in session, but the precariousness of negotiations and the closeness of default makes the timing a tad inconvenient.Talking about the fallout of the collapse of Silicon Valley Bank in March, Federal Reserve chair Jerome Powell said that it seems the worst of the crisis is over.“The severe period of stress, those have now all been resolved and all the depositors have been protected,” he said, adding that JPMorgan’s acquisition of First Republic bank marked the end of the worst of it all.Asked about lessons that he learned from the crisis, he noted that there needs to be stronger regulation and supervision, but declined to offer any specifics as he has tasked Fed vice chair Michael Barr with drafting specific policy proposals.“I am not aware of anybody thinking [the collapse] could happen so quickly,” Powell said. “Now that we know that was possible… it will be up to vice chair Barr to design ways to address that.”Today’s Federal Reserve interest rate hike is its second quarter-point hike in a row, after a series of half- and three-quarter point hikes over the last year. Fed chair Jerome Powell said at his press conference this afternoon that “slowing down was the right move”.“I think it’s enabled us to see more data and it will continue to do so. We have to always balance the risk of not doing enough and not getting inflation under control against the risk of maybe slowing down economic activity too much,” he said. “We thought that this rate hike, along with the meaningful change in our policy statement, was the right way to balance that.Asked about the possibility of a recession, Powell seemed optimistic that the Fed could achieve a “soft landing” – keeping interest rates high without seeing huge impacts on unemployment. He noted that even as rates have hit 5% over the last 14 months, the unemployment rate stands at 3.5%.“It’s possible that we can continue to have a cooling in the labor market without having the big increases in unemployment that have gone with many prior episodes,” he said.Of course, Powell noted earlier in the press conference that the full impacts of the interest rate increases have yet to be seen, acknowledging uncertainty about the full economic impact of rate hikes.Federal Reserve chair Jerome Powell emphasized the importance of raising the debt ceiling, though noted that the debt limit is “fiscal policy matters”.“It’s essential that the debt ceiling be raised in a timely way so that the US government can pay all of its bills when they’re due. Failure to do that would be unprecedented,” he said. “We’d be in uncharted territory.Powell noted that the Fed doesn’t “give advice to either side” and also noted that “no one should assume that the Fed can protect the economy from the potential short- and long-term effects” upon default.He also noted that debt limit standoff did not play a role in the Fed’s decision today to increase interest rates.Federal Reserve chair Jerome Powell is holding a press conference after the central bank announced a quarter-point interest rate increase. Powell’s tone in the press conference has changed since he last addressed the press in March. The Fed is no longer anticipating needing more rate increases, but will monitor the economy in determining future interest rate changes.While Powell is still reiterating the Fed’s inflation target of 2%, he acknowledged that the economy is “seeing the effects of our policy tightening on demand and the most interest-rate-sensitive sectors of the economy, particularly housing and investment”. In other words, the Fed sees its interest rate hikes taking effect in the slowing of the economy.“There are some signs that supply and demand in the labor market are coming back into balance,” Powell said. He added that the “economy is likely to face further headwinds from tighter credit conditions”, meaning the full effects of the interest-rate hikes have yet to be seen.Taking a question from a reporter on whether the Fed’s statement today should be taken as a hint that officials will pause rate hikes, Powell said the officials did not make a decision on a pause, but noted that they intentionally updated their stance in today’s press statement that removed a line suggesting more increases would be appropriate.“Instead, we’re saying that in determining the extent to which [more hikes are needed], the Committee will take into account certain factors,” he said. “That’s a meaningful change that we are no longer saying we anticipate [changes] and we will be driven by incoming data meeting by meeting.”The press statement that came with the Federal Reserve’s announcement of another interest rate hike is nearly identical to the one that was released at its last meeting on 22 March, with one key exception.In its 22 March release, Fed officials in the Federal Open Market Committee (FOMC) hinted that more interest rates are to come, saying: “The Committee anticipates that some additional policy firming may be appropriate” in order to bring inflation down to the target of 2%.In today’s statement, that line was cut.The rest of the statement was in line with FOMC’s March meeting statement. They reiterated their stance that “inflation remains elevated” and the jobs market has been strong, with the unemployment rate low. They emphasized that “the US banking system is sound and resilient” and that they are “highly attentive to inflation risks”.Analysts have been wondering whether this interest rate increase will be the Fed’s last, with pauses to come after as the interest rate is held steady at future meetings.Any more hints about what is next for interest rates after this most recent hike will likely be made at Fed chair Jerome Powell’s press conference at 2.30pm ET.The Federal Reserve just announced a quarter-point interest rate increase. This brings the interest rate to a 16-year high at 5% to 5.25%. The central bank has been on a year-long campaign to temper inflation, though it has had to delicately balance the potential of shaking the economy too much with stringent rate increases.Fed chair Jerome Powell will lead a closely watched press conference, where he will discuss the Fed’s view on the state of the economy.The United Auto Workers (UAW) union said in an internal memo that it is holding off on a Joe Biden endorsement due to the president’s electric vehicle policies.UAW president Shawn Fain said in the memo that union leaders met with Biden last week and discussed “our concerns with the electric vehicle transition”, according to the New York Times. The union is concerned that auto workers will suffer during the transition to EV as less workers are needed to assemble EVs.“The EV transition is at serious risk of becoming a race to the bottom,” the memo reads, referring to electric vehicles. “We want to see national leadership have our back on this before we make any commitments.”The union has 400,000 members across the country, though members are primarily in auto-industry heavyweight Michigan, a key election battleground state.The FBI arrested a man in Florida on Tuesday for his involvement in the January 6th Capitol riots, specifically for setting off an “explosive device” in the US Capitol tunnel that leads into the building. Daniel Ball, 38, was first arrested last week by the Citrus County Sheriff’s Office for assaulting seven people, including law enforcement officers, in Florida. Ball’s probation officer, upon being shown photos and videos of the Capitol riot, identified Ball as the person throwing an explosive device in the tunnel, where law enforcement was blocking rioters.Ball faces multiple charges related to the riot, including assaulting police officers and entering a restricted area with a deadly weapon.The justice department said in March that at least 1,000 people have been arrested on charges related to the riots, with 518 pleading guilty to federal crimes so far.Election denier Jim Marchant announced that he will be running for US Senate, challenging Democrat incumbent senator Jacky Rosen for the seat she won last year.During his announcement speech on Tuesday, Marchant said that he is running to “protect Nevadans from the overbearing government, from Silicon Valley, from big media, from labor unions, from the radical gender-change advocates,” the Washington Post reported.His election campaign was acknowledged by Rosen on Twitter, who replied to Marchant’s announcement:
      Nevadans deserve a Senator who will fight for them, not a MAGA election denier who opposes abortion rights even in cases of rape and incest…
      While far-right politicians like Jim Marchant spread baseless conspiracy theories, I’ve always focused on solving problems for Nevadans.
      Marchant has described himself as a “MAGA conservative”, the Post reports, and is an avid supporter of Donald Trump. More

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      Bipartisan US debt ceiling talks restart as deadline moves closer – as it happened

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      That’s it for today’s live politics blog!Here’s what happened today:
      Senate minority leader Mitch McConnell has said he will be in the 9 May meeting on the debt ceiling, but emphasized that Biden has to negotiate with House speaker Kevin McCarthy. “There is no solution in the Senate,” said McCarthy to reporters on Tuesday.
      A Florida woman faces two charges of battery – one a felony – after allegedly throwing a drink at the far-right Republican congressman Matt Gaetz.
      Senate majority leader Chuck Schumer has said that Democrats will wait on a 9 May meeting between Biden and congressional leaders to decide if they will move forward on a clean debt ceiling push that would not include spending cuts, but added that Democrats will be pushing for a two-year full extension.
      Illinois senator Dick Durbin said that he wants to move on a bill imposing a code of ethics on supreme court justices, but wants to make sure he has the votes, as California senator Dianne Feinstein remains absent from the Senate following a bout of shingles.
      New York representative Alexandria Ocasio-Cortez said late on Monday that Feinstein should resign, joining a bipartisan chorus calling for Feinstein to step down amid absences from the Senate.
      A new poll puts Donald Trump ahead of Florida governor Ron DeSantis among Republican primary voters in a hypothetical 2024 presidential primary election, as Trump continues to outperform DeSantis in several polls.
      Thank you for reading! Check in for more updates tomorrow!The White House’s economist warned against Republicans “playing games” with the US economy through the debt ceiling debate when interest rate increases are already having an averse impact on the economy, Reuters reports.“The economy remains, it’s been strong. You don’t want to be pushing it off of the course that it’s on,” said Heather Boushey in an interview with Reuters.Boushey added: “The Fed is raising interest rates in the hope of reducing inflation. That is having this negative effect on the banking sector. Why would we add to that?”Boushey noted that raising the debt ceiling could remove the risk of a debt default, one that could take affect on 1 June.A Florida woman was charged with allegedly throwing a drink at the Florida representative Matt Gaetz. The Guardian’s Martin Pengelly reports.
      A Florida woman faces two charges of battery – one a felony – after allegedly throwing a drink at the far-right Republican congressman Matt Gaetz.
      The Walton county sheriff reportedly said Gaetz insisted on pressing charges. Gaetz maintained he was justified in doing so, saying 41-year-old Selena Jo Chambers “cross[ed] the Rubicon beyond just words to throwing stuff”.
      A previous case of a drink being thrown at Gaetz resulted in a woman being sent to prison.
      In 2019, Amanda Kondrat’yev, then 35 and a former political opponent of Gaetz, received a 15-day prison sentence for throwing a slushie at her rival.
      That beverage-blitzing brouhaha happened at an “Open Gaetz” public event at restaurant in Pensacola appropriately named the Brew Ha Ha.
      Read the full story here.Senate majority leader Chuck Schumer has said that Democrats will wait on a 9 May meeting between Biden and congressional leaders to decide if they will move forward on a clean debt ceiling push that would not include spending cuts. Schumer added that he wants a two-year extension of the debt ceiling versus a stopgap measures, the Washington Post reported.Senate minority leader Mitch McConnell has said he will be in the 9 May meeting on the debt ceiling, but emphasized that Biden has to negotiate with House speaker Kevin McCarthy.“There is no solution in the Senate,” said McConnell to reporters on Tuesday.From CNN’s Manu Raju:Many expect McConnell to ultimately help negotiate a bipartisan debt ceiling agreement, as the Kentucky senator did in 2021.But McConnell has maintained that Biden must negotiate with McCarthy and House Republicans about the debt ceiling.Illinois senator Dick Durbin said that he wants to move on a bill imposing a code of ethics on supreme court justices, but wants to make sure he has the votes.CNN’s Manu Raju noted that with California senator Dianne Feinstein out, Durbin is unsure of when he could forward such legislation.“I’d like to make sure we have enough folks to pass it,” said Durbin.Feinstein is a member of the Senate judiciary committee, but has been out due a case of shingles. Durbin confirmed to Raju that he has “not personally” spoken with Feinstein about when she would return.The defense department and the Federal Aviation Administration have been tracking a balloon that was flying off the coast of Hawaii last week, but a defense official said today there’s no indication it is connected to China or any other adversary, and it presents no threats to aviation or national security, the Associated Press reports.The balloon was first detected by radar on Friday.
      Pacific Air Forces launched three F-22s to assess the situation and visually identified a spherical object. We monitored the transit of the object and assessed that it posed no threat,” US Indo-Pacific Command said.
      The defense official said the balloon was floating at about 36,000ft (11,000 meters), and it did not fly over any critical defense infrastructure or sensitive sites.After determining that the balloon presented no threat to people on the ground or to aviation over Hawaii, the military took no action to bring it down, said the official, who spoke on condition of anonymity to discuss military operations.It’s not clear who owns the balloon, which has now passed out of Hawaii’s airspace, the official said.The latest balloon sighting comes about three months after the US military shot down what officials said was a Chinese spy balloon that crossed Alaska and part of Canada before returning to the US and triggering widespread interest as it flew across the country.It was shot down over the Atlantic off the South Carolina coast on 4 February. Large portions of the balloon were recovered by the US military.US officials said it was equipped to detect and collect intelligence signals as part of a huge, military-linked aerial surveillance program that targeted more than 40 countries. Beijing insisted the balloon was just an errant civilian airship used mainly for meteorological research that went off course due to winds and had only limited “self-steering” capabilities.The US military acknowledged there have been several other balloons that have been tracked over and near the US in recent years, but none lingered over America for as long as that one did. The incident further eroded relations between the US and China.At a press conference just now, White House press secretary Karine Jean-Pierre elaborated on what Joe Biden will discuss with House majority leader Kevin McCarthy over the debt ceiling next week:“The president is going to make it clear to them that they have to avoid a default. It is their constitutional duty to do this. It is their constitutional duty to the American people for them to do their jobs. He will also say we will have a conversation about the budget and appropriations, and that is something that he will be very clear about. We can have a conversation about that, but it is important to not default.“The president is going to continue to make that clear. He is going to make that clear and have that conversation.”The Biden administration will temporarily send an additional 1,500 troops to the US-Mexico border as pandemic-related restrictions to migration are set to expire on 11 May.An unnamed US official told Reuters on Tuesday that the additional troops will be part of a supplementary preparation for an increase in illegal immigration as Title 42 comes to an end. Title 42 allowed the US to expel migrants amid the Covid-19 pandemic.The troops will not carry out any law enforcement operations and will assist US border patrol that is currently in the area, said the US official who asked to stay anonymous.The number of Americans listing guns and crime as a top issue for them has increased, according to a new Gallup poll.Of those polled for Gallup’s Most Important Problem list, seven percent said that guns and gun control were a priority issue for them, the Hill reported. Six percent listed crime and violence.In polling done months earlier, only 3% listed crime as their top issue and 1% listed crime.Both issues were listed below problems such as government and poor leadership, immigration and the economy.House Democrats have quietly started taking steps to introduce a rare legislative procedure that could force a debt limit increase and bypass Republican legislation for cuts.The New York Times just reported that Democrats are trying to set up a discharge petition that would allow Democrats to force a bill onto the floor if they get enough signatures – 218. This would mean all 213 house Democrats would need to sign the petition, and five Republican representatives would have to join.Though the House is in recess today, House Dems held a pro forma session and introduced an emergency rule that would give them two weeks, until 16 May, to collect the 218 signatures.Though Democrats see the bill as a gamble, Hakeem Jeffries, Democratic House minority leader, sent a letter to fellow Democrats today expressing a tone of defiance and saying that House Dems “are working to make sure we have all options at our disposal to avoid default”.Oklahoma is the latest state to pass legislation banning gender-affirming care for minors, as several states pass bills targeting the rights of transgender people.The Republican governor, Kevin Stitt, signed a bill on Monday making it a felony for healthcare practitioners to provide children with gender-affirming care, including puberty-blockers and hormones, the Associated Press reported.The bill comes as parents of transgender children, healthcare workers, and transgender people say that such care is essential.“Gender-affirming care is a critical part of helping transgender adolescents succeed, establish healthy relationships with their friends and family, live authentically as themselves, and dream about their futures,” said Lambda Legal and the ACLU in a joint statement, PBS Newshour reported.At least 15 other states have taken similar measures, with over 500 bills introduced in 2023 that target aspects of life for transgender people.A Montana lawmaker is suing the state, Montana’s house speaker, and the sergeant of arms of the state’s house after she was censured, asking to be fully reinstated to her position.House GOP voted to ban representative Zooey Zephyr on Wednesday from the state’s floor, gallery and anteroom after Zephyr, who is the state’s first openly transgender representative, criticized legislators for supporting a ban on gender-affirming care for minors.Zephyr is now suing to be allowed back onto the house floor as she is only allowed to vote virtually. The lawsuit, filed on Monday, argues that limiting her ability to vote violates “free speech and expression rights,” the Washington Post reported.“House leadership explicitly and directly targeted me and my district because I dared to give voice to the values and needs of transgender people like myself,” said Zephyr in a statement.“By doing so, they’ve denied me my own rights under the constitution and, more importantly, the rights of my constituents to just representation in their own government.”We’ve reached the midpoint for today’s politics live blog.Here’s what’s happened so far:
      New York representative Alexandria Ocasio-Cortez said late on Monday that the California senator Dianne Feinstein should resign, joining a bipartisan chorus calling for Feinstein to step down amid absences from the Senate.
      Senate majority leader Chuck Schumer said during a Tuesday speech on the Senate floor that Democrats will only pass a “clean” debt ceiling increase, as a 1 June debt default looms.
      A new poll puts Donald Trump ahead of Florida governor Ron DeSantis among Republican primary voters in a hypothetical 2024 presidential primary election, as Trump continues to outperform DeSantis in several polls.
      Debt ceiling talks have gained a second wind after a warning on Monday by the US treasury secretary Janet Yellen that the US could default on its debt as soon as 1 June, as Biden confers a 9 May meeting with top congressional leaders.
      Here is reporting on the Senate judiciary committee meeting from the Guardian’s Chris Stein, who is currently in the hearing room.Partisan splits were apparent in the Senate judiciary committee today as it kicked off a hearing on the supreme court’s ethics, with Democrats accusing the nation’s highest court of believing itself to be outside the law, and Republicans defending the justices from what they said were attacks motivated by bitterness over its recent rulings.“Ethics cannot simply be left to the discretion of the nation’s highest court,” the committee’s Democratic chair Richard Durbin said. “The Court should have a code of conduct with clear and enforceable rules so both Justices and the American people know when conduct crosses the line. The highest court in the land should not have the lowest ethical standards. That reality is driving a crisis in public confidence in the supreme court.”Durbin called the hearing after a series of reports about entanglements between the court’s justices, particularly its six conservatives, and lawyers and donors with interests in the court’s outcome. Chief justice John Roberts was invited to testify, but declined, instead sending a document signed by all of the court’s nine justices that outlined their approach to ethics.Lindsey Graham, the judiciary committee’s top Republican, said the Democrats were using the hearing to retaliate against justices who authored opinions they didn’t agree with. Last year, the court’s conservatives upended nearly a half-century of precedent by overturning Roe v Wade and allowing states to ban abortion entirely, cut into the Environmental Protection Agency’s ability to regulate power plant emissions and weakened laws on possession of concealed weapons.“This is not about making the court better,” Graham said. “This is about destroying a conservative court. It will not work.”The Senate judiciary committee is holding a meeting to discuss whether the US supreme court should bolster its ethics rules following a series of reported conflicts between supreme court justices and personal interests.The Tuesday meeting comes after several scandals that have called into question the ethics of the court and diminishing public confidence in the institution, the Washington Post reported.Most recently, supreme court justice Clarence Thomas has come under fire after media organization ProPublica publicized that the longest-serving justice accepted luxury travel and vacations over two decades from the real estate mogul and Republican donor Harlan Crow.Such gifts and a real estate deal between Thomas and Crow were undisclosed by Thomas.Ahead of today’s meeting, Chief Justice John Roberts declined an invitation to appear and testify about judicial ethics. The justice instead forwarded a three page “Statement on Ethics Principles and Practices”, which is signed by all nine justices. The non-binding memo is meant to “reaffirm and restate foundational ethics principles and practices to which they subscribe”.But Roberts himself is facing scrutiny after a whistleblower alleged that Roberts’s wife, Jane Roberts, made millions through recruiting for top law firms. More

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      Danger and deja vu: what 2011 can tell us about the US debt ceiling crisis

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      Angry at the size of the government debt, House Republicans have passed a bill that ties spending cuts to any lifting of the US’s debt limit. A tense fight is escalating, with Democrats refusing to budge and hard-line Republicans digging in. Without a solution, economists and others warn, the US could be plunged into an “economic catastrophe”.You can be forgiven a sense of déja vu. This has all happened before. Only this time, it could be worse.The federal government has a legal maximum on how much debt it can accumulate –often called the debt ceiling or the debt limit. Congress has to vote to raise that limit and has done 78 times since 1960 – often without fuss. But in recent years, the debt negotiations have become Washington’s most heated – and potentially dangerous – debate.This year’s fight looks like the most high-risk one since 2011, when Republicans used the debt limit debate as a bargaining chip for spending cuts. It was a fight to the bitter end. One former congressman told the New York Times that the battle drew “parallels and distinctions with other tumultuous times such as the civil war”.With stock markets reeling and 72 hours left before the US would have defaulted on its debts, a disaster that threatened to wreak havoc on the economy, Republicans and Democrats finally agreed on a bill that raised the debt ceiling by $900bn and cut spending by nearly the same amount.For Republicans, particularly the new rightwing Tea Party members who refused to budge even as default loomed, it was a political win.Politics are once again deeply embedded in this year’s debt ceiling debate and many see a mirroring of the debt ceiling crisis of 2011.The House speaker, Kevin McCarthy, is caught between his party’s moderate and far-right factions. Though McCarthy rallied his party behind a House bill, Democrats are so far refusing to negotiate.The US treasury is already running on fumes. In January, the treasury started using “extraordinary measures” to avoid defaulting on US debts while the debate over raising the limit started. Some estimate that the US government’s default date – the so-called “X date” when the government officially runs out of funds to pay its bills — will arrive in late July, giving the GOP and Democrats less than three months to find a solution.The US has never defaulted on its debt. Failure to find a solution would send stock markets reeling, recipients of federal benefits might not get their monthly checks, parts of government would grind to a halt and “long-term damage” would be inflicted on the US economy, according to the Federal Reserve chair, Jerome Powell.Fights over the US debt ceiling are common and usually resolved after a session of bloviating. Wall Street has so far ignored this scrap, betting on a repeat. But, as in 2011, all that could change as the X date approaches. This time the Tea Party Republicans have been replaced by even more hardline politicians – the Freedom Caucus – who begrudgingly signed on to McCarthy’s plan but have sworn to hold out for cost cuts no matter the price.“What will damage the economy is what we’ve seen the last two years: record spending, record inflation, record debt. We already know that’s damaging the economy,” Representative Jim Jordan, a founding member of the Freedom Caucus, told Reuters.David Kamin, a New York University law professor who served as an economic adviser to the Obama and Biden administrations, including during the 2011 crisis, said: “Congress has negotiated [the debt ceiling] over the many decades that it’s been in its current form. But what is different about this episode, and the episode in 2011, is the very credible threat from the Republican side to not raise the debt limit, to demand a large set of policy in exchange for a vote.” He added: “That then sets up a dangerous negotiation where what’s at stake is severe repercussions for the economy.”A default would be catastrophic for the US and global economy, creating instability in financial markets and interrupting government services. But, as the 2011 crisis showed, even getting close to default comes with a price. Markets plummeted and the ratings agency S&P downgraded the US’s credit rating for the first time in history, making it more expensive for the country to borrow money. The cost to borrow went up $1.3bn the next year and continued to be more expensive years later, essentially offsetting some of the negotiation’s cost-cutting measures.To some economists, that was just the short-term impact. The spending cuts ushered in years of budget tightening whose impacts were felt for years.“We were still in a pretty depressed economy and in recovery from the great recession when those cuts were instituted. They just made the recovery last far longer than it should have,” said Josh Bivens, chief economist for the Economic Policy Institute, a leftwing thinktank. “Over the next six or seven years, really valuable public goods and services were not delivered because they were cut so sharply.”Government spending tends to rise after recessions but per-capita federal spending fell after the debt crisis. Bivens argues that if government spending had continued at its normal levels, the unemployment rate would have returned to its pre-recession level five or six years before 2017, when the job market finally recovered its losses.This time around the Republican bill, called the “Limit, Save and Grow Act”, would increase the debt ceiling by $1.5tn in exchange for $1.47tn in cuts during the next fiscal year and a 1% spending increase cap thereafter. The Congressional Budget Office estimates that the bill would cut federal spending by $4.8tn over the next 10 years.The bill would mean cuts to things like defense, education and social services over time, though Republicans have outlined few specific cuts in the bill. House Republicans are proposing scrapping Joe Biden’s student relief program, making more stringent work requirements for government benefits, namely Medicaid, and rolling back several Inflation Reduction Act investments, particularly clean energy tax credits.The IRS would lose $71bn in funding under the new bill, a move that would lead to more lenient tax collection and ultimately cost the federal government $120bn over the next decade. Republicans have been targeting the IRS for budget cuts for over a decade, weakening the agency’s tax enforcement over corporations and the wealthy and allowing $18bn in lost government revenue, ProPublica estimated in 2018.While Republicans are using old tricks from 2011, Democrats appear to have learned some lessons from the Obama-era spat. After 2011, the Obama administration refused to negotiate over the debt ceiling. Biden and other Democratic leaders have continued the practice: the Senate majority leader, Chuck Schumer, called the Republican bill “dead on arrival” when it got to the Senate.“President Biden will never force middle class and working families to bear the burden of tax cuts for the wealthiest, as this bill does,” the White House press secretary, Karine Jean-Pierre, said in a statement Wednesday. “Congressional Republicans must act immediately and without conditions to avoid default and ensure that the full faith and credit of the United States is not put at risk.”The question now is: what are the political costs for the Democrats and Republicans? As the crisis deepens, how long will they hold and who will fold?Despite Republicans preaching fiscal discipline, US debt actually rose by $7.8tn under the Trump administration. Spending cuts would also likely target GOP-friendly expenditures. The party has already had to make a tough compromise over ethanol tax credits, which were ultimately left untouched at the behest of “Corn Belt” Republican lawmakers. And McCarthy still lost four Republican votes, the most he can afford to lose with the Republicans’ slim House majority. He has little room to compromise even if he can get Biden to negotiate.Matt Gaetz, a Republican representative from Florida and another Freedom Caucus member, voted against McCarthy’s bill and said in a statement that it would “increase America’s debt by $16tn over the next ten years”.“Gaslighting nearly $50tn in debt to America is something my conscious [sic] cannot abide at this time,” Gaetz said.Kamin pointed out that Republicans only focus on the debt ceiling as a leverage point when there is a Democratic president – the debt ceiling was raised three times during Trump’s presidency – showing that their objective is less about actually reducing the deficit than it is about playing politics.“The Republican party – at least elements of the Republican party – have organized themselves using this as a litmus test for adherence to their beliefs and are really focused on it as a central element of their agenda,” Kamin said. But the fight is “not fundamentally about deficits and debt”, he said. It is a fight about politics.As in 2011, the two sides are locked in a game of chicken and waiting for the opposition to cave. If neither side blinks, the impact on the economy will be felt for years to come. More

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      US House passes debt ceiling bill in tactical victory for Kevin McCarthy

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      House Republicans narrowly passed sweeping legislation on Wednesday that would raise the government’s legal debt ceiling by $1.5tn in exchange for steep spending restrictions, a tactical victory for the House speaker Kevin McCarthy as he challenges Joe Biden to negotiate and prevent a catastrophic federal default this summer.Biden has threatened to veto the Republican package, which has almost no chance of passing the Senate in the meantime, where Democrats hold a slim majority.The president has so far refused to negotiate over the debt ceiling which the White House insists must be lifted with no strings to ensure America pays its bills.But McCarthy’s ability to swiftly unite his slim majority in the House and bring the measure to passage over opposition from Democrats and even holdouts in his own party gives currency to the Republican speaker’s strategy to use the vote as an opening bid forcing Biden into talks. The two men could hardly be further apart on how to resolve the issue.The bill passed by a razor-thin 217-215 margin.“We’ve done our job,” McCarthy said after the vote.“The president can no longer ignore” the issue of federal spending limits, he said. “Now he should sit down and negotiate.”As the House debated the measure, Biden indicated he was willing to open the door to talks with McCarthy, but not on preventing a first-ever US default that would shake America’s economy and beyond.“Happy to meet with McCarthy, but not on whether or not the debt limit gets extended,” Biden said. “That’s not negotiable.”Passage of the sprawling 320-page package in the House is only the start of what is expected to become a weeks-long political slog as the president and Congress try to work out a compromise that would allow the nation’s debt, now at $31tn, to be lifted to allow further borrowing and stave off a fiscal crisis.The nation has never defaulted on its debt, and the House Republican majority hopes to maneuver Biden into a corner with its plan to roll back federal spending to fiscal 2022 levels and cap future spending increases at 1% over the next decade, among other changes.In exchange for raising the debt limit by $1.5 trillion into 2024, the bill would roll back overall federal spending and:
      Claw back unspent Covid-19 funds.
      Impose tougher work requirements for recipients of food stamps and other government aid.
      Halt Biden’s plans to forgive up to $20,000 in student loans.
      End many of the landmark renewable energy tax breaks Biden signed into law last year. It would tack on a sweeping Republican bill to boost oil, gas and coal production.
      Democrats derided the Republican plan as a “ransom note”, a “shakedown” and “an unserious bill” that was courting financial danger.It’s a first big test for the president and the Republican speaker, coming at a time of increased political anxiety about the ability of Washington to solve big problems amid the need to raise the federal debt limit in a matter of weeks.The treasury department is taking “extraordinary measures” to pay the bills, but funding is expected to run out this summer. Economists warn that even the serious threat of a federal debt default would send shockwaves through the economy.A nonpartisan congressional budget office analysis estimated the Republican plan would reduce federal deficits by $4.8tn over the decade if the proposed changes were enacted into law.In the Senate, leaders were watching and waiting.Senate majority leader Chuck Schumer said House passage of the legislation would be a “wasted effort” and that McCarthy should come to the table with Democrats to pass a straightforward debt-limit bill without GOP priorities and avoid default.Senate Republican leader Mitch McConnell, who stepped aside to give McCarthy the lead, said the speaker has been able to unite the House Republicans.Now, he said, Biden and McCarthy must come to agreement. Otherwise, he said, “We’ll be at a standoff. And we shouldn’t do that to the country.” More