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House Speaker Says Democrats Should Cap Spending to Avoid U.S. Debt Default

The debt ceiling was created to allow for greater borrowing flexibility

On Sunday, House of Representatives Speaker Kevin McCarthy said he believes Democrats would agree to cap government spending to avoid a U.S. debt default; he wants to discuss the idea with President Joe Biden.

Now in control of the House, Republicans have threatened to use the debt ceiling as leverage to demand spending cuts from Biden's Democrats, who control the U.S. Senate and the White House.

This has raised concerns in Washington and on Wall Street about a bruising fight that could be at least as disruptive as the protracted battle of 2011, which prompted a brief downgrade of the U.S. credit rating and years of forced domestic and military spending cuts.

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