His remarks leave in doubt the chances to cinch a grand bargain in time for the looming Aug. 2 deadline to avoid the nation’s first default on its outstanding debts.
Obama, in brief remarks about a disappointing report on job growth in June, stressed that reaching a debt-reduction deal and raising the federal limit on borrowing are key factors in encouraging businesses to create more jobs. He said “uncertainty” over raising the debt limit was among several issues that have “made businesses hesitant to invest more aggressively.”
To put the U.S. economy on a stronger footing, “we’ve got to rein in our deficits and get the government to live within its means,” while still making investments that create jobs and boost U.S. competitiveness, Obama said.
“The sooner that the markets know that the debt limit ceiling will have been raised and that we have a serious plan to deal with our debt and deficit, the sooner that we give our businesses the certainty that they will need in order to make additional investments to grow and hire,” he said.
But the reported outlines of a deal raised tensions Friday between the White House and congressional Democrats, with party leaders and rank-and-file members alike fuming at reports that Obama is considering cuts to Social Security and Medicare as part of the bargain.
Sen. Bernard Sanders (I-Vt.) and Sen. Sheldon Whitehouse (D-R.I.) joined several speakers representing more than 300 organizations in denouncing the proposed cuts Friday in a conference call with reporters.
“I think they’re making a grievous mistake if they think they can just present anything to us and assume that because we’re Democrats, we’ll go along with what the president has capitulated to,” Whitehouse said.
As Obama and a bipartisan group of lawmakers prepared for the Sunday summit at the White House, Rep. Eric Cantor (R-Va.), the House majority leader, announced the cancellation of a recess originally scheduled for later this month. He advised members that the House would be in session the week of July 18.
“It’s not like there’s some imminent deal,” Boehner told reporters Friday morning. At one point he held his arms far apart to demonstrate the distance between the two sides, alluding to the fact that increased tax revenues face steep political hurdles in the Republican-controlled House and deep cuts to entitlements face staunch opposition in the Democratic-controlled Senate.
“I don’t think this problem has narrowed at all in the last several days,” he said, likening the task of finding a solution to a Rubik’s Cube.
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