A top Senate Democratic leader Monday warned Republicans not to bring the country down to the wire on the debt ceiling because it could risk economic turmoil
Sen. Charles Schumer, D-N.Y., said House Speaker John Boehner, R-Ohio should commit to raising the debt ceiling as the GOP enters talks with Democrats on how to cut spending. The nation's treasury will reach the $14.3 trillion debt ceiling on May 16 and has until about July 2 before money runs out to pay creditors.
"The markets do not want to hear more threats," Schumer told reporters Monday. 'The time for economic brinkmanship is over."
The two parties agree spending cuts are needed, but Democrats also want to include tax increases, a nonstarter for the GOP
Despite the differences, Schumer believes the two sides must come up with a plan well before the Aug. 2 deadline.
"We ought to have plenty of breathing room," he said. "It shouldn't be an hour, a day or even a week. If nothing is happening by July 15, I'd say markets are going to get really worried. So, the sooner the better."
President Obama plans to meet with congressional leaders this week and the topic will almost certainly be finding a compromise on the debt ceiling.