Obama to Hold News Conference on Debt Talks

The White House won't host any further negotiations Friday

The White House won't host any further negotiations Friday

Obama press conference - Jim Young Reuters - banner.jpg

President Obama will hold a news conference on Friday at 11 a.m. to talk about what the White House describes as "the status of efforts to find a balanced approach to deficit reduction."

Hoping to edge closer to a tentative debt-ceiling deficit-reduction deal, Obama urged House and Senate leaders on Thursday to work "over the next 24 to 36 hours" toward finding a path forward, according to congressional aides.

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In a meeting at the White House, Obama asked the leaders to speak about the negotiations at their caucus meetings on Friday to--in the words of one Democratic aide--"figure out what can get 218 and 60 [votes], respectively."

And with Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., now negotiating separately from House leaders on an alternate path to raise the debt ceiling, the momentum has shifted to the upper chamber where leaders are more aggressively working to assure that the United States will not default on its debt.

"The president appreciates Senators Reid and McConnell trying to solve the immediate problem. It's important that everyone in the room agreed that default is not an option. However, this remains a fallback option," said a Democratic official familiar with the talks, who said there was "very little" discussion of the proposal in Thursday's meeting.

The Reid-McConnell backup plan sends a positive signal to Wall Street that default appeared less likely, despite the public standoff in the negotiations. If McConnell and Reid can craft a deal that the White House can sign off on, and the Senate can pass, it would create enormous political pressure on the House. Such a scenario would give headaches to House GOP leaders.

No wonder then that House Speaker John Boehner, R-Ohio, conceded on Thursday that a version of the McConnell plan could ultimately become the vehicle to raise the debt ceiling. "I think it's worth keeping on the table," he said. "There are a lot of options that people have floated. And frankly, I think it's an option that may be worthy at some point." Senate leadership aides said Reid, through House Minority Whip Steny Hoyer, D-Md., has kept House Democrats apprised of his efforts and they are supportive. Minority Leader Nancy Pelosi, D-Calif., said: "I think everyone who's concerned about lifting the debt ceiling is saying bravo for Senator McConnell to say this must be done," she said.

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Administration officials, including Treasury Secretary Timothy Geithner, who was at Thursday's meeting, have said a plan to raise the nation's $14.3 trillion debt ceiling needs to be in place by August 2, or the country risks defaulting on some of its bills. Obama and congressional leaders will not meet on Friday, but could meet again sometime during the weekend.

Obama said he and his staff would be "on call" during this time.

Few other details of the meeting were immediately known, though it was described as "polite." House Majority Leader Eric Cantor, R-Va., who had a blowup with Obama in Wednesday's meeting, did not say a word in Thursday's meeting, according to Democratic aides.

For his part, Geithner warned the group that the world financial markets' concerns are two-fold: the debt ceiling must be raised, and a plan must be put in place to deal with the deficit and debt, said one GOP aide.

Image credit: Jim Young/Reuters