Given his past commentary, McCarthy's speech is expected to strike a bearish tone on the economic outlook. His remarks are set to come as he is entangled in a high-stakes battle with President Joe Biden and the Democrats over the debt ceiling.McCarthy has vowed that he won't pass legislation to raise the country's borrowing authority unless it is coupled with a clawback in federal spending. Biden has demanded a clean bill, citing past measures under the Trump administration.
Back in January, the United States hit its $31.4 trillion debt ceiling limit. Congress approved a budget last year that leans on considerable deficit spending. To prolong government functions, the Treasury Department began"extraordinary" measures to keep money flowing, but those steps are expected to run out.
Various estimates indicate that the government cash spigot will run dry between June and August if neither side blinks or reaches an agreement. Such an outcome could prompt the U.S. to default on its debt payments, which economists fear would be catastrophic for the economy.Biden recently touted a 236,000 job gain in March, with the unemployment rate edging down to a historically low 3.5%.
Not far from McCarthy, members of the House Judiciary Committee will hold a field hearing in Manhattan that same day about"victims of violent crime" under district attorney Alvin Bragg. The hearing comes in the wake of a 34-count indictment of former President Donald Trump over an alleged"catch and kill" scheme.
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