"I think there is a path forward," Mark Zandi, the chief economist at Moody's Analytics, told Insider."I think they should suspend the debt limit until the end of the fiscal year, and then pass legislation at that time to increase the debt limit, hopefully for at least a couple years."
Even though Speaker of the House Kevin McCarthy's bill passed the House last week, it faces a highly likely rejection in the Democratic-controlled Senate and White House. Biden also vowed to veto the bill should it make it to his desk. left to come to agree on a solution to raise the debt ceiling — and neither side is appearing to budge on their stances.
"Republican-imposed austerity would mean the U.S. economy in 2033 would still be short nearly 1 million jobs and 3 percentage points of GDP growth – as if our economy stood completely still for a year," Warren wrote in a letter to Biden."In fact, the economic impact would be so great, that it would result in even more job losses than a short-lived debt ceiling breach, in both the short- and long-term.