Former Obama OMB Director: White House Has Less Leverage in Debt-Ceiling Fight
Former White House Office of Management and Budget (OMB) director Peter Orszag believes that even though the White House won the last round of negotiations regarding the fiscal cliff, they lost leverage during those negotiations for the more important debt-ceiling negotiations that loom.
“I think there’s no doubt that they have somewhat less leverage than they did in the round just completed,” Orszag said on CNBC.
Orszag belives that because the White House will be forced to again negotiate over the sequester and an “appropriations bill for the funding of the daily operations of the government,” they will have less leverage than they did in previous rounds of negotiations, especially concerning spending cuts.
Treasury Secretary Timothy Geithner announced the country has already hit its debt ceiling, which means unless Congress and the White House agree on terms to raise the debt ceiling in the next two months, the nation will default on its credit obligations.