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Biden, McCarthy meeting ends with no deal on debt ceiling

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Biden, McCarthy meeting ends with no deal on debt ceiling

WASHINGTON, May 22 (Reuters) – President Joe Biden and House Speaker Kevin McCarthy could not reach an agreement Monday on how to raise the U.S. government’s $31.4 trillion debt ceiling with just 10 days before a possible default that could sink the U.S. economy, but vowed to keep talking.

The Democratic president and the top congressional Republican have struggled to make a deal, as McCarthy pressures the White House to agree to spending cuts in the federal budget that Biden considers “extreme,” and the president pushes new taxes that Republicans have rejected.

Both sides stressed the need to avoid default with a bipartisan deal after Monday evening’s meeting, however, and signaled that they’d be talking regularly in coming days.

A source familiar with the situation said that White House negotiators were returning to Capitol Hill on Monday night to resume talks.

“We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement,” Biden said in a statement after the meeting, which he called “productive.”

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McCarthy told reporters after over an hour of talks with Biden that negotiators are “going to get together, work through the night” to try to find common ground.

“I believe we can still get there,” McCarthy said. He is not willing to consider Biden’s plan to cut the deficit by raising taxes on the wealthy and closing tax loopholes for the oil and pharmaceutical industries, he said, and is focused on reducing spending in the 2024 federal budget.

Democrats and Republicans have until June 1 to increase the government’s self-borrowing limit or trigger an unprecedented debt default that economists warn could bring on a recession.

Treasury Secretary Janet Yellen on Monday offered a sobering reminder of how little time is left, saying the earliest estimated default date remains June 1 and that it is “highly likely” that Treasury will no longer be able to pay all government obligations by early June if the debt ceiling is not raised.

Republican Representative Patrick McHenry, who was in the White House meeting, ruled out any partial budget agreement to raise the debt ceiling. “No one’s going to agree to anything until we have a finalized deal,” he said.

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He said the tone in the Biden meeting was the most positive yet.

Any deal to raise the limit must pass both chambers of Congress, and therefore hinges on bipartisan support. McCarthy’s Republicans control the House 222-213, while Biden’s Democrats hold the Senate 51-49.

A failure to lift the debt ceiling would trigger a default that would shake financial markets and drive interest rates higher on everything from car payments to credit cards.

U.S. markets rose on Monday as investors awaited updates on the negotiations.

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It will take several days to move legislation through Congress if and when Biden and McCarthy come to an agreement. McCarthy said that a deal must be reached this week for it to pass Congress and be signed into law by Biden in time to avoid default.

CUTS AND CLAWBACKS

Republicans want discretionary spending cuts, new work requirements for some programs for low-income Americans and a clawback of COVID-19 aid approved by Congress but not yet spent in exchange for a debt ceiling increase, which is needed to cover the costs of lawmakers’ previously approved spending and tax cuts.

Democrats want to hold spending steady at this year’s levels in 2024, while Republicans want to return to 2022 levels next year and cap spending growth in the years ahead. A plan passed by the House last month would cut a wide swath of government spending by 8% next year.

Democratic President Biden’s proposed 2024 budget and Republicans’ ‘Limit, Save, Grow’ Act will both generate budget savings over a decade, but how they will do so is starkly different.

Biden, who has made the economy a centerpiece of his domestic agenda and is seeking re-election, has said he would consider spending cuts alongside tax adjustments but that Republicans’ latest offer was “unacceptable.”

The president tweeted that he would not back “Big Oil” subsidies and “wealthy tax cheats” while putting healthcare and food assistance at risk for millions of Americans.

Both sides must also weigh any concessions with pressure from hardline factions within their own parties.

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Some far-right House Freedom Caucus members have urged a halt to talks, demanding that the Senate adopt their House-passed legislation, which has been rejected by Democrats.

McCarthy, who made extensive concessions to right-wing hardliners to secure the speaker spot, may risk being removed by members of his own party if they do not like the deal he cuts.

Former President Donald Trump, a Republican who is seeking another term after losing to Biden in the 2020 election, has urged Republicans to force a default if they do not achieve all their goals, downplaying any economic consequences.

Liberal Democrats have pushed back against any cuts that would harm families and lower-income Americans. Hakeem Jeffries, the top House Democrat, accused Republicans of running a “hostage negotiation” with the talks and said he is seeking Republican votes for a discharge petition that could raise the debt ceiling on its own.

Biden has offered to freeze spending at this year’s levels, Jeffries said, an offer that was rejected by Republicans.

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Reporting by David Morgan, Richard Cowan and Andrea Shalal; Writing by Susan Heavey; Editing by Lisa Shumaker and Stephen Coates

Our Standards: The Thomson Reuters Trust Principles.

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US military constructs hulking metal pier amid Biden's $320 million gamble to get aid into Gaza

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US military constructs hulking metal pier amid Biden's $320 million gamble to get aid into Gaza

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The U.S. military has completed the construction of a hulking metal pier that is expected to be jabbed into a beach in northern Gaza in the coming days, officials said.

Completing the massive makeshift structure — approximately 1,500-ft long or the length of five U.S. football fields — is the first step in the Biden administration’s two-month-long, $320 million gamble to open a sea route to get humanitarian aid through the eastern Mediterranean and into Gaza, where Israel continues to wage war with the Hamas terror group.

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The construction of the new floating pier and causeway is risky for President Biden and the Pentagon as aid delivery teams face unknown dangers and uncertainties as they attempt to work around the challenges of getting aid into Gaza through the Rafah border.

“In the coming days, you can expect to see this effort underway. And we are confident that we will be able to, working with our NGO partners, ensure that aid can be delivered,” Maj. Gen. Pat Ryder, the Pentagon press secretary, said Tuesday, noting humanitarian groups were ready for the first shipments through the new U.S. maritime route.

REPUBLICAN SAYS BIDEN HAS ‘STRENGTHENED’ HAMAS BY WITHHOLDING AID FROM ISRAEL: ‘COMPLETELY INCOMPETENT’

In this image provided by the U.S. Army, soldiers assigned to the 7th Transportation Brigade (Expeditionary) and sailors attached to the MV Roy P. Benavidez assemble the Roll-On, Roll-Off Distribution Facility (RRDF), or floating pier, off the shore of Gaza in the Mediterranean Sea on April 26, 2024.  (U.S. Army via AP)

The administration’s effort to open the additional sea route comes as the intensifying war between Israel and Hamas has neared the land crossings in Rafah.

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Scott Paul, an associate director of the Oxfam humanitarian organization, described the sea route as “a solution for a problem that doesn’t exist” because land crossings could bring in all the needed aid, he said.

Paul suggested the amount of aid that is allowed to be delivered into Gaza is dependent on Israeli officials allowing it. Some officials have expressed concerns the aid could fall into the hands of Hamas, the very terrorists that Israel is seeking to eliminate from the Palestinian territory.

UN REVISES GAZA DEATH TOLL, ALMOST 50% LESS WOMEN AND CHILDREN KILLED THAN PREVIOUSLY REPORTED

“Like all of the land crossings, it comes down to the consent of the government of Israel,” Paul said. “If Israel is comfortable with allowing the maritime corridor to function … then it will work in a limited way. And if they don’t, it won’t. Which is why it’s a very, very expensive alternative.”

A photo of the floating pier

The pier is part of the Army’s Joint Logistics Over The Shore (JLOTS) system which provides critical bridging and water access capabilities. (U.S. Army via AP)

Ophir Falk, foreign policy adviser to Israeli Prime Minister Benjamin Netanyahu, said Tuesday that the country had enabled the entrance of thousands of aid trucks into Gaza and would continue to do so.

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Falk accused Hamas of disrupting aid distribution by hijacking and attacking convoys.

The Israeli military said in a statement Tuesday that it will keep acting in line with international law to distribute aid to Gaza. It also has previously said there are no limits on aid.

 

Israeli Prime Minister Benjamin Netanyahu pledged to Biden to allow in more aid and safeguard those workers.

Trucks carrying aid and supplies

U.S.-military-backed construction crews in the eastern Mediterranean created a hulking metal dock, completing the first part of the Biden administration’s $320 million effort to open a sea route to get humanitarian aid into Gaza. (AP Photo/Leo Correa)

Anastasia Moran, an associate director for the International Rescue Committee, a global humanitarian group, said truckloads of aid entering Gaza increased by 13% last month.

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The Israel-Hamas war has been particularly lethal to Palestinian civilians residing in Gaza with Palestinian health officials estimating more than 35,000 have been killed. Israeli officials estimate the number of deceased civilians is approximately 16,000 civilians. A U.N report from May 8 found the number of women and children killed so far in the war to be just under 13,000.

The Associated Press contributed to this report.

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Canadian Nobel-winning author Alice Munro dies aged 92

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Canadian Nobel-winning author Alice Munro dies aged 92

Munro was renowned for her short stories, which focussed on the frailties of the human condition.

Alice Munro, the Nobel Prize-winning Canadian author known for her mastery of the short story, has died at the age of 92.

Munro died at her home in Port Hope, Ontario, publisher Kristin Cochrane, chief executive officer of McClelland & Stewart, said in a statement on Tuesday.

“Alice’s writing inspired countless writers … and her work leaves an indelible mark on our literary landscape,” Cochrane said.

Munro published more than a dozen collections of short stories, which she focused on the frailties of the human condition and set in the rural Ontario countryside where she grew up.

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Awarded the International Booker Prize for her body of work in 2009, and the Nobel Prize in Literature in 2013, Munro was diagnosed with dementia about a decade ago and was living in a care home.

Canadian Prime Minister Justin Trudeau said the world had “lost one of its greatest storytellers”.

“A true literary genius … her short stories about life, friendship, and human connection left an indelible mark on readers,” he said.

Munro was born on July 10, 1931, in Wingham, Ontario. Her father raised foxes and poultry, while her mother was a smalltown teacher.

Munro decided she wanted to be a writer when she was 11, and never wavered in her career choice.

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“I think, maybe I was successful in doing this because I didn’t have any other talents,” she once explained in an interview.

“I’m not really an intellectual,” Munro said. “There was never anything else that I was really drawn to doing, so nothing interfered in the way life interferes for so many people.”

“It always does seem like magic to me.”

Munro’s first story, The Dimensions of a Shadow, was published in 1950, while she was studying at the University of Western Ontario.

Munro was three times awarded the Governor General’s Award for fiction, the first for Dance of the Happy Shades, a collection of stories published in 1968. Who Do You Think You Are (1978) and The Progress of Love (1986) also won Canada’s highest literary honour.

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Her short stories were often published in the pages of prestigious magazines, such as The New Yorker and The Atlantic. Her last collection of work, Dear Life, appeared in 2012.

The characters in Munro’s stories were often girls and women who led seemingly unexceptional lives but struggled with issues ranging from sexual abuse and stifling marriages to repressed love and the ravages of age.

She was often likened to Anton Chekhov, the 19th-century Russian known for his brilliant short stories – a comparison made by the Swedish Academy when it awarded her the Nobel Prize.

Calling Munro a “master of the contemporary short story”, the Academy also said: “Her texts often feature depictions of everyday but decisive events, epiphanies of a kind, that illuminate the surrounding story and let existential questions appear in a flash of lightning.”

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The Boys Gets Early Season 5 Renewal

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The Boys Gets Early Season 5 Renewal


‘The Boys’ Renewed for Season 5 at Amazon



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