Week of July 24, 2011 thru July 30, 2011
--Congressional Republican Leaders Signal Debt-Hike Breakthrough Near
--House Speaker Boehner: 'Confident' Debt Ceiling Impasse Will End Soon
--Rep. Boehner: GOP In Direct, Intense Talks With Obama on Debt Hike
--Sen. McConnell: White House Now 'Fully Engaged' On Debt Hike Deal
--President Obama Meeting With Sen. Reid, Rep. Pelosi
By John Shaw
WASHINGTON (MNI) - In what appears to be a significant breakthrough,
House Speaker John Boehner and Senate Minority Leader Mitch McConnell
Saturday afternoon said that they are in direct and intense talks with
--In Mostly Party Line Vote, House Rejects Senate Democratic Bill
--House Majority Leader: House Will Return To Legislative Session Monday
--Senate Republicans Pledge To Block Reid Bill In Senate
--Washington Waits For Reid and McConnell To Begin Negotiations
By John Shaw
WASHINGTON (MNI) - In a vote orchestrated for both retaliation and
symbolism, the House voted Saturday to reject the debt ceiling package
assembled by Senate Majority Leader Harry Reid.
The House voted 246 to 173 to defeat the Reid bill. It was
--Senate Votes To Reject Boehner's Debt Plan, 59 to 41
--Senate GOP, In Dig To Reid, Threatens Filibuster of His Plan
--Senate Leaders Reid, McConnell Exchange Verbal Shots
--Sen. Reid: McConnell Rejected Two Offers Friday To Begin Talks
By John Shaw
WASHINGTON (MNI) - Just moments after House Speaker John Boehner's
carefully crafted debt limit bill arrived on the Senate floor Friday
evening, Senate Democrats voted to defeat the bill.
The Senate voted to reject Boehner's debt hike plan on a 59 to 41
vote. All Democrats voted to kill Boehner's bill. Several conservative
WASHINGTON (MNI) - The Congressional Budget Office late
Friday said a revised Senate debt-hike plan would save $2.2
trillion to $2.4 trillion over 10 years and includes a multistep
process for raising the debt ceiling in the future:
Analysis of the Impact on the Deficit of the Budget Control Act of
2011 as Revised in the Senate
July 29, 2011
Letter to the Honorable Harry Reid
The Congressional Budget Office (CBO) has estimated the impact on
the deficit of the Budget Control Act of 2011, as proposed in the Senate
on July 29, 2011. The legislation would:
WASHINGTON (MNI) - Following House passage of Speaker Boehner's
debt-hike bill Friday evening, the White House issued the following:
The bill passed today in the House with exclusively Republican
votes would have us face another debt ceiling crisis in just a few
months by demanding the Constitution be amended or America defaults.
This bill has been declared dead on arrival in the Senate. Now that yet
another political exercise is behind us, with time dwindling, leaders
need to start working together immediately to reach a compromise that
--House Passes Speaker Boehner's Debt Hike Bill, 218 to 210
--Senate Set To Table Boehner's Plan As Early As Friday Night
--Tough Talks To Extend Through Weekend On Debt-Hike Compromise
By John Shaw
WASHINGTON (MNI) - After a week of revisions and fierce lobbying by
the House Republican leadership, the House approved late Friday a debt
ceiling bill that the White House opposes and Senate Democrats have
vowed to kill as early as later in the night.
The House approved the GOP's debt hike bill on a 218-to-210 vote.
No Democrat voted for the legislation.
By Vicki Schmelzer
NEW YORK, July 29 (MNI) - The currency market was less concerned
Friday about Congress raising the U.S. debt ceiling, seen as likely to
be done at the eleventh hour, and more concerned about the United States
losing the AAA rating on its debt.
By Yali N'Diaye
WASHINGTON (MNI) - Atlanta Federal Reserve President Dennis
Lockhart said Friday that steps towards monetary policy normalization
are more likely than "additional steps in the direction of easing," as
he expects growth to strengthen in the second half of the year and into
2012, with inflation indicators converging towards 2%.
And should the economy strengthen as Lockhart expects, that
normalization should occur by the end of 2012, but not until economic
indicators clearly point to a sustained growth improvement, he said.
--US Econ Likely To Improve In 2nd Half Of This Year, Into 2012
--FOMC Must Watch Situation Closely, Remove Accommodation At Approp Pace
By Brai Odion-Esene
WASHINGTON (MNI) - St. Louis Federal Reserve President James
Bullard Friday described the current highly accommodative stance of
monetary policy as appropriate given present conditions in the economy,
but warned that as the recovery speeds up next year, the central bank
must trim its balance sheet to guard against causing higher inflation.
In remarks prepared for the 3rd Annual Mountain Economic Summit in
By Isobel Kennedy
NEW YORK, July 29 (MNI) - The Treasury market rallied Friday on
extremely weak economic data and the inability of the House of
Representatives to get a debt limit bill passed yet.