The S&P credit downgrade may actually serve to kick start an agreement to reduce the U.S. debt by $4 trillion over the coming decade, reports Julie Hirschfeld Davis for Bloomberg. However, the two parties are still divided over the push for tax increases and entitlement programs like Medicare.
In light of S&P’s credit outlook downgrade, Congress could vote early to increase the government’s $14.29 trillion legal debt limit. However, the Treasury Department calculates that the debt ceiling will be hit by May 6.
House Democratic Whip Steny Hoyer of Maryland stated that the S&P’s revision “shows the urgent, bipartisan action needed to put our nation on a serious path to reduce deficits.”
Max Chen contributed to this article.
