Following the quick collapse of a proposed House compromise to reopen the government and extend the debt ceiling, Senator John McCain (R-AZ), who has been critical of the strategy to attempt to defund of Obamacare, strongly encouraged Republicans to stop the standoff.
“It’s very, very serious,” McCain told the New York Times. “Republicans have to understand we have lost this battle, as I predicted weeks ago, that we would not be able to win because we were demanding something that was not achievable.”
The House plan echoed the dates in a proposed Senate compromise—funding the government through January 15 and raising the debt ceiling until early February—but unraveled Tuesday night as House Speaker John Boehner was unable to find a version that would satisfy the conservatives in his caucus but also gain approval in the Senate.
On Tuesday night, the ratings agency Fitch put the United States on a “negative ratings watch,” warning that “political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default.”
[Image via Outside the Beltway]
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