President-elect Donald Trump criticized former House Speaker Kevin McCarthy for the debt ceiling suspension approved in 2023, calling it one of the dumbest political decisions in years. Despite his criticism, Trump acknowledged McCarthy as a friend and a good person.
Trump expressed his disapproval of the debt ceiling extension that was passed during the Biden Administration, stating that it was unnecessary and did not benefit the country. He emphasized that the Democrats should be held accountable for the potential consequences of the decision.
Congress and President Joe Biden had previously agreed to suspend the debt limit through January 1, 2025. However, Trump has been advocating for an increase in the ceiling before he assumes office.
Treasury Secretary Janet Yellen highlighted the urgency of addressing the debt limit issue to protect the full faith and credit of the United States. She indicated that extraordinary measures would need to be taken if the debt limit is reached between January 14 and January 23.
In response to Trump's criticism, Rep. Chip Roy of Texas pointed out that the debt ceiling extension was opposed by only 71 House Republicans 18 months ago. He also noted that Democrats had voted against a recent debt ceiling increase proposal, emphasizing the need for meaningful spending cuts.
Despite the discussions and concerns raised, the measure that ultimately passed did not raise the debt ceiling. Both Trump and McCarthy underscored the importance of addressing the issue promptly and responsibly, preferably during the Biden Administration.
