Senate Republicans and Democrats reach short-term debt ceiling deal

Senate Republicans and Democrats have agreed to raise the debt ceiling by $480 billion, but that means they'll have to renegotiate a new deal by the beginning of December. CNBC's Ylan Mui joins 'The Exchange' with details. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi Senate Majority Leader Chuck Schumer announced Thursday morning that lawmakers have reached a deal on a short-term debt ceiling increase after hours of discussion with Minority Leader Mitch McConnell. “I have some good news,” Schumer, D-N.Y., said from the Senate floor. “We have reached agreement to extend the debt ceiling through early December, and it’s our hope that we can get this done as soon as today.” The agreement, according to people familiar with the deal, allows the debt limit to increase by $480 billion, a sum the Treasury Department estimates will allow it to pay bills until Dec. 3. The current national debt is about $28.4 trillion and would be permitted to rise to about $28.8 trillion under the deal. Investors appeared relieved that the U.S. would stave off default. Stocks rose after the news. The Dow Jones Industrial Average finished Thursday’s session up more than 300 points , while the Nasdaq Composite added just over 1%. The announcement from the Senate’s top Democrat came less than a day after McConnell, R-Ky., offered a stopgap solution to avert a looming government default and subsequent economic downturn. Schumer said Thursday afternoon that the Senate will vote on the deal later in the day as McConnell scrambled to drum up 10 members of their caucus to join all 50 Democrats to move forward to a final vote on the bill. The GOP has in recent weeks prevented Democrats from passing a ceiling bill in the 50-50 Senate through their threat to filibuster. Senate Minority Whip John Thune, Republican of South Dakota, told reporters that he’s had a tough time trying to persuade enough members to sign on to the short-term debt limit bill: “In the end, we’ll be there but it’s--it’ll be a painful birthing process.” Republicans and Democrats had been at odds for weeks over how to raise or suspend the U.S. borrowing limit by Oct. 18, when, the Treasury Department estimates, the country will exhaust its emergency measures to pay the nation’s bills. The U.S. has never defaulted on its debt, and most economists predict that doing so would lead to a recession and violent swings in financial markets. Republicans, frustrated by what they see as reckless spending initiatives from the Biden administration, had until Wednesday threatened to filibuster any debt-ceiling legislation brought to the Senate under normal procedures. Instead, the GOP had pressed Democrats to pass a solution via budget reconciliation, which would save Republicans from voting to increase the nation’s borrowing limit. McConnell made that point clear in unveiling his offer on Wednesday. “We will also allow Democrats to use normal procedures to pass an emergency debt limit extension at a fixed dollar amount to cover current spending levels into December,” he wrote. “This will moot Democrats’ excuses about the time crunch they created and give the unified Democratic government more than enough time to pass standalone debt limit legislation through reconciliation.” President Joe Biden spent much of his week categorizing Republicans as obstructers, saying that their threat to filibuster made efforts to hike or suspend the debt limit needlessly complicated. » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-n... Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC https://www.cnbc.com/select/best-cred... #CNBC #CNBCTV