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...March 1 deadline set by Treasury Secretary Robert Rubin. Markets and Congressional negotiators trembled Wednesday when Moody's threatened to downgrade its rating of $387 billion in U.S. bonds because it said the budget impasse had 'significantly increased the risk of a default.' Urged on by House Speaker Newt Gingrich's offer to make a "down payment" on reaching a budget deal, Tumulty reports that even hard-line House Freshmen appear ready to make a deal. "The threat of not extending the debt ceiling was going to be their last hurrah, and it now looks like the Republicans are going...
WASHINGTON, D.C.: With the threat of another government shutdown looming Friday, House Speaker Newt Gingrich put the ball back in the Administration's court with an offer to make a 'down payment' on a balanced budget, while leaving major disagreements until after November elections. In doing so, Gingrich accepted the deal proposed by President Clinton in his Tuesday State of the Union speech, where the President proposed putting off a long-range budget reduction plan while enacting changes on which the two sides already agree. Gingrich called Clinton this morning to close the deal. White House correspondent James Carney says...
Budget negotiations between President Clinton and congressional leaders recessed without an accord, amid speculation, fueled by Speaker Newt Gingrich's pessimistic assessment, that the talks may have broken down. At his news conference the President insisted a budget deal was reachable if policy differences over such key programs as Medicare and Medicaid could be put aside by Republicans and fought out later at the November elections. Members of Congress took advantage of a January recess to scurry home and sound out voters...
...case of Arianna, after plighting her troth to Newt (who then chose not to go to the altar) and flirting with Colin (who also got cold feet), she and other Newt loyalists have been batting their eyes at Lamar Alexander, and Lamar is panting for the attention. Before Christmas, Arianna played host at a breakfast and dinner with other neoconservatives to meet Alexander and offer him their ideas. "Lamar is most in sync with the idea of deepening the Republican realignment," says William Kristol, the neoconservative guru. Thus the candidate posing as an outsider sealed his dalliance with Washington...
WASHINGTON, D.C. The White House urged Newt Gingrich and Bob Dole Monday to repudiate House Majority Leader Dick Armey's suggestion that any bill to raise the debt ceiling would also contain far-reaching policy changes such as the elimination of the Commerce Department. "His remarks are dangerous," Mike McCurry told reporters today, adding that the tactic could put U.S. economic security at risk. Karen Tumulty reports: "Armey's comments notwithstanding, there's no Republican strategy on the debt yet. Members are still returning to Washington. Moreover, the White House may have some leverage, given its advantage over Congress...