Republicans now looking to push the debt ceiling out to mid May. They want to allow the Treasury to borrow money until mid May, where then they will debate and make another decision on the debt ceiling again. And I’m sure we’ll have another prolonged performance.. Read full story below.

Stock Market News – Republicans Want To Suspend Debt Ceiling Until May..

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House Speaker John Boehner indicated Tuesday that Republicans will vote on an extension of the federal debt ceiling to allow Treasury to borrow money until mid-May. The move would reverse the order of a series of expected debt and spending fights in Washington, an effort designed to put the GOP on more sound political footing.

The Speaker said the measure would be tied to a provision that would suspend the pay of lawmakers if they do not agree to a budget by April 15th. A vote is expected Wednesday.

“I think the American people understand that you can’t continue to spend money that you don’t have,” Boehner said.

At the White House, spokesman Jay Carney indicated the president would likely sign the measure if the Congress passes it. “The House Republicans made a decision to back away from the kind of brinksmanship that was very concerning to the markets, very concerning to business, very concerning to the American people,” Carney said.

Extending the debt limit for a few months without demanding specific spending cuts means the next moment of high political and market drama will occur when the so-called “sequester” or automatic across the board spending cuts, kicks in on March 1. That deadline is itself the result of another temporary maneuver by Congress on New Year’s Day to avoid the fiscal cliff.

But for Republicans, having the sequester fight first is politically advantageous — the White House won’t be as easily able to call their bluff as they would in a fight over the nation’s debt ceiling. That’s because many in the GOP say they can live with the consequences of the dramatic spending cuts if no deal is reached. On the other hand, many Republicans (and the White House) argued that the consequences of a stalemate on the debt ceiling – defaulting on federal obligations to pay for earlier spending – would needlessly roil global markets and possibly threaten the nation’s credit rating.

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