Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent: More than 70 martyrs in Israeli attacks on Gaza since dawn.
Death toll from latest Israeli strikes on Gaza rises to 30
Al Mayadeen's correspondent: Five killed in the Israeli bombing of a civilian vehicle on Al-Qassam Street in Khan Younis, south of the Gaza Strip
Hamas confirms that it has no connection to the shooting incident in Rafah and affirms its commitment to the ceasefire agreement
Al Mayadeen's correspondent: Two civilians were killed and four others, including a child and an infant, were injured in an Israeli bombing of a house belonging to the Al-Banna family in the al-Sabra neighborhood, south of Gaza City
Al Mayadeen's correspondent: An Israeli airstrike targets the vicinity of Al-Shifa Medical Complex, west of Gaza City
Al-Qassam: We will postpone the handover of the body of the Israeli captive we found, which was scheduled for today, due to the occupation's violations
Al Mayadeen's correspondent in Gaza: Israeli occupation aircraft launch airstrikes on the city of Rafah in the southern Gaza Strip
Netanyahu's office: At the end of the security consultations, the prime minister instructed the military to launch massive military strikes on the Gaza Strip immediately
President Aoun: We urge the activation of the monitoring committee, the cessation of hostilities, ongoing Israeli violations, attacks

US Republican debt ceiling plan would slow growth: Moody's

  • By Al Mayadeen English
  • Source: Agencies
  • 25 Apr 2023 08:35
  • 1 Shares
3 Min Read

When compared to a scenario in which a new ceiling was approved without conditions, unemployment would reach 4.6 percent, up from 3.5 percent in March 2023.

  • x
  • Signage is seen outside the Moody's Corporation headquarters in Manhattan, New York, U.S., November 12, 2021. (REUTERS)
    Signage is seen outside the Moody's Corporation headquarters in Manhattan, New York, US, November 12, 2021. (Reuters)

The plan proposed by Republican House Speaker Kevin McCarthy to raise the US debt ceiling in exchange for cuts in government spending was criticized on Monday by Moody's Analytics, who claim the plan would slow growth and cut employment.

The agency argued that if the draft presented by McCarthy on April 17 were passed as is, it would lead to a drop of 0.6 percentage points in US potential growth in 2024 and the elimination of 780,000 jobs.

In comparison to a scenario in which a new ceiling was approved without conditions, unemployment would reach 4.6 percent in March 2024, up from 3.5 percent in March 2023.

President Joe Biden has advocated for such a "clean" lifting of the US borrowing limit, claiming that the deficit spending has already been approved by Congress and is thus not subject to debate.

While the White House has warned that the Republican plan is akin to "economic hostage-taking" and McCarthy has blamed Biden for "bumbling" toward a default, a deadline is rapidly approaching; the US government risks defaulting on payment obligations by July or even sooner, with serious consequences for the US and global economies.

McCarthy said Sunday that the House will vote on his plan this week.

Related News

Amnesty: US strike on Yemen prison may constitute war crime

Trump’s weak dollar strategy risks global fallout: Forbes

Moody's Analytics estimated that the plan as presented is "especially inopportune as it would meaningfully increase the likelihood of such a downturn," despite the fact that the risk of recession remains in the United States.

The agency added that "the significant government spending cuts... are substantial headwinds to near-term economic growth."

The United States hit its $31.4 trillion borrowing limit in January, forcing the Treasury to take "extraordinary measures" that allow it to continue financing the government's activities.

However, the US government runs the possibility of going into payment default as early as July if the debt ceiling is not raised or suspended by Congress before the present options run out.

Why are Republicans proposing an increase in the debt ceiling?

In an effort to curb Democrats' allegedly "reckless" spending, House Republicans have vowed to increase the debt ceiling only if spending caps are put in place.

McCarthy is calling for a floor vote before the end of the month, posting on Twitter Tuesday that it was "time to stop the madness." "Democrats' reckless spending caused inflation, a banking crisis, and so many other problems," McCarthy tweeted.

However, Biden claimed that the Republican leader was proposing "huge cuts to important programs" that "millions of Americans count on," and that his plan would return the nation to "the same old trickle-down economic theories of the past."

Democrats are adamantly opposed to the Republican plan, contending that it amounts to extortion to tie raising the debt ceiling to budget cuts. McCarthy "threatened to become the first speaker to default on our national debt," Biden said.

  • United States
  • Republican Party
  • Moody's
  • Democratic Party
  • Unemployment
  • Kevin McCarthy

Most Read

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

  • Technology
  • 24 Oct 2025
Arab League chief exposes secret US deal shielding 'Israel’s' nukes

Arab League chief exposes secret US deal shielding 'Israel’s' nukes

  • Politics
  • 27 Oct 2025
Abu Hamza, the spokesperson for the Al-Quds Brigades, during a speech televised on October 22, 2025 (Al-Quds Brigades Military Media)

Al-Quds Brigades' Abu Hamza mourns leaders, vows continued resistance

  • Politics
  • 22 Oct 2025
US missionary kidnapped in Niger capital, suspected taken toward Mali

US missionary kidnapped in Niger capital, suspected taken toward Mali

  • Africa
  • 23 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Members of the al-Qassam Brigades, the military wing of Hamas, and Egyptian workers search for the bodies of hostages in a tunnel discovered during searches in Hamad City, Khan Younis, in the southern Gaza Strip, on Tuesday, Oct. 28, 2025 (AP)
Politics

'Israel' obstructing Gaza body recovery, creating false claims: Hamas

Lebanese Prime Minister Nawwaf Salam talks to US Deputy Special Envoy to the Middle East Morgan Ortagus at the Grand Serail in Beirut, Lebanon, October 28, 2025 (NNA)
Politics

Salam conveys to Ortagus goals behind any possible negotiations

Writers boycott NYT, demand justice as Gaza media ban faces court
Politics

300+ writers boycott NYT Opinion, cite persistent anti-Palestine bias

Settlers attack West Bank olive harvesters, Injure 3 Palestinians
Politics

Settlers attack West Bank olive harvesters, injure 3 Palestinians

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS