Debt ceiling talks; January 6 and the 2024 race; Trump returns to CNN : NPR

AYESHA RASCOE, HOST:

There is a assembly scheduled this week between President Joe Biden and congressional leaders from each events to speak about elevating the nation’s debt restrict. Republicans need spending cuts in alternate for doing that. On Friday, the president mentioned the debt restrict and the funds are two separate points, and he accused MAGA Republicans of holding the U.S. economic system hostage.

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PRESIDENT JOE BIDEN: We’re not a deadbeat nation. We pay our payments.

RASCOE: Becoming a member of me now to speak about that is NPR’s nationwide political correspondent Mara Liasson. Good morning, Mara.

MARA LIASSON, BYLINE: Good morning, Ayesha.

RASCOE: So the Treasury secretary notified Congress on Monday that the U.S. may default by June 1. In order that looks like it must be a extremely motivating issue for this assembly. However is it?

LIASSON: That is a very good query. Up to now, negotiations on the debt ceiling have all the time discovered a face-saving off-ramp for each events on the final minute. To date, there isn’t any off-ramp in sight for this one. There are a number of Republican lawmakers who assume it is value risking default – and that will be default on spending commitments Congress has already licensed – if they’ll obtain their aim of chopping funds for a few of President Biden’s priorities, like local weather change and scholar debt reduction. However the president isn’t enthusiastic about making these modifications, so the 2 sides are very far aside.

RASCOE: So what are the outcomes that you just’re anticipating following this assembly?

LIASSON: There are a few completely different outcomes. They may negotiate a deal, one thing that each side may declare as a victory for them. They may keep at an deadlock, let the nation default, which might have horrific penalties. Additionally they may kick the can down the highway, conform to a short lived enhance of the debt ceiling, which might then must be raised once more later this yr, across the similar time that the large authorities funding invoice needs to be handed. And that will danger a authorities shutdown, though there are lots of folks in Washington who assume {that a} shutdown is the lesser of two evils in comparison with a default.

RASCOE: Nicely, kicking the can down the highway is one thing that Congress likes to do.

LIASSON: Sure.

RASCOE: However who would undergo in a default?

LIASSON: The American folks would undergo. It might be economically disastrous, based on economists. Unemployment would go up. Inflation would go up. A recession would most likely occur. When it comes to political ache, the White Home thinks the Republicans could be blamed for a default. But when there’s any financial fallout, that will be on President Biden’s watch, and it might definitely harm his efforts to get reelected.

RASCOE: And this, I assume, could be a very good time to speak in regards to the newest jobs report, which was just a little little bit of a shock, proper?

LIASSON: A constructive shock – the unemployment charge fell to three.4%. That is the lowest since 1969. African American unemployment fell to 4.7. That is the lowest since these statistics have been collected. And a number of jobs have been created. Wages went up. That is good for staff. Nevertheless it additionally tells you the economic system isn’t cooling off, which is making it tougher for the Federal Reserve to carry down inflation with out tipping the economic system right into a recession.

RASCOE: Mara, the Division of Justice had an enormous victory final week. A jury discovered 4 members of the Proud Boys responsible of seditious conspiracy within the assault on the U.S. Capitol over two years in the past. What’s the significance of that?

LIASSON: The importance is that seditious conspiracy is essentially the most critical cost introduced within the January 6 prosecutions. And to this point, the Division of Justice has a fairly spectacular file. They’ve charged a couple of thousand folks, and apparently there are extra indictments to come back. This additionally raises the query of how January 6 will play within the 2024 elections. Former President Trump not solely mentioned in that 2020 debate to the Proud Boys, quote, “stand again and stand by,” however he is talked about pardoning the January 6 defendants.

He is actually leaned into his help for them. In a current rally he held in Waco, Texas, he opened with footage of the riot and a recording of people that’ve been imprisoned for it singing the nationwide anthem. And that reveals you {that a} huge a part of the Republican base, Donald Trump’s supporters, see the January 6 defendants – they do not assume they did something fallacious. They see them as political prisoners.

RASCOE: Former President Trump is anticipated to take part in a CNN city corridor on Wednesday. What’s going to you be waiting for with that?

LIASSON: I will be watching for the way he is handled by a, quote, “mainstream information group.” You already know, he’s – his account is again on Twitter. He’s the front-runner for the Republican nomination. He will get a number of press protection and a number of scrutiny. And it reveals you that whereas a big a part of the Republican institution might want Donald Trump to be within the rearview mirror, he’s nonetheless very a lot on the hood of the automotive.

RASCOE: That is NPR’s nationwide political correspondent Mara Liasson. Thanks, Mara.

LIASSON: You are welcome.

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