from Renewing America

No Good Choices: Why A Short Term Debt Limit Extension Is on the Table

January 14, 2013

Blog Post
Blog posts represent the views of CFR fellows and staff and not those of CFR, which takes no institutional positions.

Both political parties seem to be posturing ahead of the coming showdown over the nation's borrowing limit, which Congress will need to raise toward the end of February. While the White House has said it will not negotiate over the debt limit, many House Republicans have threatened a default if major spending cuts are not enacted.

On his blog "Macro and Markets," CFR's Robert Kahn explains why a short-term debt-ceiling hike, one that would in effect consolidate the three budget cliffs (debt limit, sequester, and continuing resolution), may offer the best hope for progress.