Wall Street hopeful as Obama, Boehner talking
WASHINGTON — With time running short, U.S. President Barack Obama and House Speaker John Boehner accelerated efforts Friday to prevent the U.S. Treasury from default and end a partial government shutdown that stretched into an 11th day. The latest impacts: New aircraft grounded, military chaplains silenced and a crab harvest jeopardized in the Bering Sea.
“Let’s put this hysterical talk of default behind us and instead start talking about finding solutions,” said Senate Republican leader Mitch McConnell of Kentucky.
Republicans in the House and Senate separately made proposals to the White House for ending an impasse that polls say has inflicted damage on their party politically.
Each offered to reopen the government and raise the $16.7 trillion debt limit — but only as part of broader approaches that envision deficit savings, changes to the health-care law known as Obamacare and an easing of across-the-board spending cuts that the White House and Congress both dislike. The details and timing differed.
“We’re waiting to hear” from administration officials, said House Majority leader Eric Cantor.
Hopes remained high on Wall Street, where investors sent the Dow Jones industrial average 111 points higher following Thursday’s 323-point surge.
In meetings with lawmakers over two days, Obama left open the possibility he would sign legislation repealing a medical device tax enacted as part of the healthcare law. Yet there was no indication he was willing to do so with a default looming and the government partially closed.
Obama called Boehner at midafternoon, and Michael Steel, a spokesman for the leader of House Republicans, said, “They agreed that we should all keep talking.”
Jay Carney, the president’s press secretary, said Obama “appreciates the constructive nature of the conversation and the proposal that House Republicans put forward.” Still, the spokesman said, “He has some concerns with it.”
In Congress, the man certain to be involved in any final agreement, Senate Majority leader Harry Reid, gave no indication of his plans.
While the impact of the shutdown varies widely, lawmakers seemed to be taking care of their own needs.
The members-only House gym remained in operation, and enough Senate staff was at work to operate the aging underground tram that ferries senators and others from the Russell Office Building to the Capitol a short distance away.
The aerospace industry reported that furloughs at the Federal Aviation Administration have resulted in a virtual stop to certification of new aircraft, equipment and training simulators.
Obama has said repeatedly in recent weeks that he is willing to negotiate with Republicans on budget, health care or other issues, but only after the government is reopened and the threat of default eliminated.