President Barack Obama and House Republican leaders were moving toward an agreement to extend the nation’s borrowing authority as they remained at odds over terms for ending the partial government shutdown.
They met for 90 minutes at the White House yesterday after House Speaker John Boehner of Ohio said he would offer a measure to postpone a potential U.S. default to Nov. 22 from Oct. 17, a step back from the brink that was enough to trigger the biggest rise in U.S. stocks in nine months.
The meeting was “very positive” and “a lot of air was cleared,” another participant, Representative Howard “Buck” McKeon of California, chairman of the Armed Services Committee, said today on MSNBC. “At the end of the day, we’re going to get this worked out.”
Under Boehner’s plan, the Treasury Department wouldn’t be able to use so-called extraordinary measures to further extend borrowing authority, creating a hard deadline, said Representative Tom Reed, a New York Republican.
The shutdown would pare 0.2 percentage point from U.S. economic growth if it lasts through this week and as much as 0.5 point if it continues another two weeks, according to the median estimate in a Bloomberg survey of economists.