Trump calls for scrapping debt limit
President Trump on Wednesday doubled down on calls to scrap the nation's debt ceiling, pressing for bipartisan action to abolish it and finding common group with Democrat Sen. Elizabeth Warren (D).
'I am very pleased to announce that, after all of these years, I agree with Senator Elizabeth Warren on SOMETHING. The Debt Limit should be entirely scrapped to prevent an Economic catastrophe. It is too devastating to be put in the hands of political people that may want to use it despite the horrendous effect it could have on our Country and, indirectly, even the World. As to Senator Warren's second statement on the $4 Trillion Dollars, I like that also, but it would have to be done over a period of time, as short as possible. Let's get together, Republican and Democrat, and DO THIS!' Trump said on Truth Social.
He shared Warren's post on X from Friday, when she agreed with Trump that the debt limit 'should be scrapped' and called for a bipartisan bill to 'get rid of it forever.'
Warren had posted Trump's comments on X, during which he noted that the progressive senator has long supported abolishing the debt limit in the past. He said he 'always agreed with her' on the matter, adding that he hasn't spoken to her personally about it.
'She wanted to see it terminated, gotten rid of not being voted on every five years or 10 years, and the reason was because it's so catastrophic for our country,' Trump said at the Friday press conference, alongside Tesla CEO Elon Musk.
Treasury Secretary Scott Bessent has urged Congress to raise the nation's debt ceiling by mid-July to prevent a default, after former President Biden and GOP leadership suspended the debt limit in 2023 to push off the threat of a national default through early 2025. The Treasury Department has also warned the government would have to implement 'extraordinary measures' to keep the nation from defaulting on its more than $30 trillion debt.
Trump and Warren have clashed throughout the years and the president has mocked her with the nickname 'Pocahontas' in various speeches. At this first joint address to Congress in March, Trump called the progressive senator the nickname and she responded by clapping from her seat.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
37 minutes ago
- Yahoo
Tesla shares rise as Politico reports Musk-White House to hold call
LONDON (Reuters) -Tesla shares listed in Frankfurt rose 5.6% on Friday after Politico reported White House aides have scheduled a call with CEO Elon Musk to broker peace after a public feud with U.S. President Donald Trump. Trump threatened to cut off government contracts to Musk's companies, while Musk suggested Trump should be impeached, turning their relationship into an all-out brawl on social media. Tesla shares closed down 14.3% on Thursday in New York, losing about $150 billion in market value. Sign in to access your portfolio
News24
40 minutes ago
- News24
$150 billion in Tesla market value wiped out during Trump, Musk blowup
• For more financial news, go to the News24 Business front page. Tesla shares went into free-fall on Thursday as US President Donald Trump publicly feuded with the electric vehicle maker's billionaire CEO Elon Musk, his self-proclaimed "First Buddy." Investors watched the unfolding drama with growing worry about what the fracas could mean for Musk's business empire. The carmaker's shares ended the day down 14%, wiping off $150 billion in market value on a day absent other news about the company. Traders dumped Tesla in heavy trading after Musk quickly responded to Trump's criticism with social media posts that stepped up criticism of the president's tax bill. Trump fired back further, alleging Musk was upset because the bill takes away tax benefits for electric vehicle purchases. Openly feuding with Trump could pose multiple hurdles for Tesla and the rest of Musk's sprawling business empire. The US Transportation Department regulates vehicle design standards and would have a big say in whether Tesla can mass-produce robotaxis without pedals and steering wheels. The agency is also investigating Tesla's driver-assistance software, known as "Full Self-Driving," following a fatal crash. "Elon's politics continue to harm the stock. First he aligned himself with Trump, which upset many potential Democratic buyers. Now he has turned on the Trump administration," said Tesla shareholder Dennis Dick, chief strategist at Stock Trader Network. With EV sales falling, Musk over the last year has re-oriented Tesla's future around self-driving robotaxis. On an earnings call last year, he said investors "should sell their Tesla stock" if they did not believe the company would solve the technological challenges of driverless vehicles. Wedbush analysts have said the AI and autonomous opportunities could be worth $1 trillion alone in market value for the company. Musk has advocated for one federal approval process for autonomous vehicles to streamline the current maze of different state regulations. Ross Gerber, CEO of Tesla investor Gerber Kawasaki Wealth and Investment Management, said the feud with Trump "creates a negative force against Tesla" that could jeopardize regulations and risk more government investigations. "Every benefit that was perceived he would have got now turns into a negative," Gerber said. Musk, the world's richest man and a key figure in the Department of Government Efficiency's (DOGE) cost-cutting plan for several months, blasted Trump's "big beautiful bill" this week, after he decided to spend less time in the White House and instead focus on his companies. Following Thursday's selloff, his net worth fell by roughly $27 billion to $388 billion, according to Forbes. Trump on Thursday said on his Truth Social platform that the "easiest way to save money in our Budget, billions and billions of dollars, is to terminate Elon's governmental subsidies and contracts." Transportation Secretary Sean Duffy has already moved to exempt autonomous vehicles from some safety requirements, and NHTSA said in April it is "actively engaged in developing a multi-faceted regulatory framework" for autonomous vehicles. Although the federal government has already started to streamline some regulations around autonomous driving, Morningstar analyst Seth Goldstein said regulators might possibly craft rules in a way that would single out Tesla. Most autonomous vehicle companies use sensors such as radar and lidar to detect objects, for example, but Tesla relies solely on cameras. Goldstein said federal regulators might devise rules requiring lidar, which would hurt Tesla. "With President Trump, being on his bad side always creates risk that you're going to get personal retaliation," Goldstein said. He doubted that such an outcome was likely, though, because many other companies have been pushing for new regulations for years. The stock has been on a roller-coaster ever since Musk endorsed Trump in mid-July 2024 in his re-election bid, gaining 169% from that point through mid-December. That was followed by a 54% slide through early April as a "Tesla Takedown" protest intensified. Musk's leadership of DOGE and alignment with the Trump administration had put off some car buyers, with sales slumping in Europe, China and key U.S. markets like California. The House of Representatives version of Trump's budget bill proposes largely ending the popular $7,500 EV subsidy by the end of 2025. Tesla and other automakers have relied on incentives for years to drum up demand, but Trump promised during the transition to end the subsidy. Tesla could face a $1.2 billion hit to its annual profit, along with an additional $2 billion setback to regulatory credit sales due to separate Senate legislation targeting California's EV sales mandates, according to J.P. Morgan. The company is still the most valuable automaker worldwide by a long shot. Through Wednesday, Tesla's market value stood at about $1 trillion, well above Toyota Motor's $290 billion. "There were a lot of people excited about Tesla because the political winds were at his (Musk's) back. And now they've turned into headwinds in a lot of different ways," Steve Sosnick, chief strategist at Interactive Brokers, said. Tesla trades at 150 times profit estimates, a steep premium to other Big Tech stocks such as Nvidia. "I am short Tesla. I don't understand it. I don't understand its valuation. I don't understand its fundamentals. I think it's overhyped," Bob Doll, Crossmark Global Investments chief investment officer, said.
CBS News
40 minutes ago
- CBS News
Amid Trump-Musk clash, Bay Area activists double down on Democratic fight
The nasty breakup going on with President Trump and Elon Musk nationally is also having an impact at the local level. Those in the Bay Area who have been fighting the current administration's policies say this is the time to make sure their message is heard loud and clear. Since 2017, Indivisible Marin has organized in many ways to fight the Trump administration and get Democrats elected to office. Susan Morgan founded the organization in the county. "I really like to feel like I'm contributing to the world and I have a purpose," Morgan said. Just like many other organizations across the country, she read the Indivisible guide written by two former congressional staffers to create change. She says it was a blow when President Trump was elected to a second term. "There was a moment of just utter heartbreak," she said. But Indivisible Marin, with 12,000 members, quickly regrouped. The Hands Off rally at the Civic Center was the largest protest to date. With a constant pulse on national politics, the breakup between Musk and Trump wasn't a surprise to Morgan. "Honestly, at first it was just like these two really deserve each other," she said. "Because here are two powerful billionaire bros out for themselves. They just look like selfish juvenile brats. And I hope that's what the American people see and realize we deserve better in our leaders." While the social media exchanges between Mr. Trump and Musk may signal a shake-up in the political portrayal of Republican leadership, Morgan says this is no time to step back from the fight. "Increasing the foot on the gas," she said. "As more and more cracks in what's happening in the MAGA movement start becoming clear to average Americans, we need to be that much more visible and that much more clear in our messaging." Indivisible Marin will be taking part in No Kings Day on June 14 with 20 different protests in the county. The group is also urging people to work from home by calling and writing elected officials. Morgan says change cannot come soon enough. "What is the alternative?" she asks. "To do what James Carville suggested and roll over and play dead? No, we have to keep fighting for American values that we all, I believe, all Americans truly believe."
