House Speaker Kevin McCarthy says Republican negotiators are “closer to an agreement” that would resolve the looming debt crisis, but there’s no deal yet with President Joe Biden.
McCarthy also says there’s no firm timeline for a final compromise that would raise the nation’s borrowing limit and avoid a catastrophic default while also making spending cuts that House Republicans are demanding. House negotiators left the Capitol after 2 a.m. Saturday and returned hours later.
McCarthy tells reporters that “we’ll get it when it gets right.” Biden said on Friday evening before departing for Camp David that bargainers were “very close.” He’s continuing to talk with his negotiating team multiple times a day, signing off on offers and counteroffers.
A key index of U.S. prices ticked higher in April, and consumer spending rebounded, a sign that inflationary pressures in the economy remain high.
The index, which the Federal Reserve closely monitors, showed that prices rose 0.4% from March to April. That was much higher than the 0.1% rise the previous month. Measured year over year, prices increased 4.4% in April, up from 4.2% in March. The year-over-year figure is down sharply from a 7% peak last June but remains far above the Fed’s 2% target.
The report also showed that despite rising prices, consumers remain buoyant. Their spending jumped 0.8% from March to April, the biggest increase since January.