How U.S. debt-limit drama has hurt economy

Wednesday, May 31, 2023 - 16:03 in Mathematics & Economics

President Biden and Republican House Speaker Kevin McCarthy reached an 11th-hour deal on the U.S. debt limit Saturday that will bring in no new revenue, claw back funds already appropriated to the IRS and for COVID relief, and essentially hold discretionary spending to current levels. Some Republicans and Democrats in both the House and the Senate criticized McCarthy and Biden, saying each conceded too much. Both houses of Congress must pass the legislation, and Biden must sign it into law by Monday when Treasury Secretary Janet Yellen has warned that funds sufficient to pay all the nation’s debts will run out. Jason Furman, Aetna Professor of the Practice of Economic Policy at Harvard Kennedy School and the Faculty of Arts and Sciences, spoke to the Gazette about the deal and the economic damage the debt-limit drama has already caused. The interview has been edited for clarity and length. Q&A Jason Furman GAZETTE: What do you think of...

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