Markets

Pelosi reportedly rejects Trump administration's debt ceiling proposal, talks to continue

Key Points
  • House Speaker Nancy Pelosi is rejecting the White House's most recent debt ceiling proposal, Bloomberg News says.
  • The administration's two-year budget cap agreement asked the Democrats find $150 billion in spending cuts from a list of $574 billion saving opportunities, Democratic official close to the talks say, according to Bloomberg.
  • Pelosi's rejection of the deal, which didn't include any revenue or tax increases, comes after Treasury Secretary Mnuchin said the market should not be "concerned" about a deal getting passed. 
Speaker of the House Nancy Pelosi addresses the Center for American Progress (CAP) 2019 Ideas Conference in Washington, May 22, 2019.
Kevin Lamarque | Reuters

House Speaker Nancy Pelosi is rejecting the White House's most recent debt ceiling proposal, which included $150 billion in spending cuts, Bloomberg News reported Friday.

The White House sent a two-year budget agreement to Pelosi late Thursday, requesting the Democrats select $150 billion in spending cuts from a list of $574 billion saving opportunities, the news service reported, citing a Democratic official close to the talks.

The White House proposal is a starting point, officials told Bloomberg.

Negotiations between the Trump administration and congressional leaders have heightened recently in efforts to reach an agreement before Congress' recess on July 26. Conservative estimates from Treasury Secretary Steven Mnuchin say the U.S. could lose its spending ability as early as September.

VIDEO2:0502:05
Trump: We would never use the debt ceiling to negotiate

Pelosi's rejection of the deal, which reportedly didn't include any revenue or tax increases, comes after Mnuchin told CNBC on Thursday the market should not be "concerned" about a debt ceiling deal getting passed.

Mnuchin said neither party wants to put the U.S. government at risk of defaulting.

Both sides are hoping to come to an agreement on Friday in order to get a House vote next week, Bloomberg said.

"[Pelosi] seems to want a deal as much as the president wants a deal, and she should," Sen. Kevin Cramer, R-N.D. told CNBC's "Squawk Box" on Friday.

VIDEO2:5502:55
Mnuchin: Markets shouldn't be concerned about the debt ceiling
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Key Points
  • "I've been pretty impressed with the way Speaker Pelosi has negotiated with Secretary Mnuchin," Sen. Kevin Cramer says.
  • "It doesn't need to be perfect. Politics is the art of the doable," the North Dakota republican tells CNBC.