Yesterday President Obama continued his push for a far-reaching deal on deficit reform by threatening a veto of any short-term increase in the debt limit. In the absence of a comprehensive resolution to the debt limit increase issue, the idea of passing an increase that would last for just a few months in order to widen the negotiating window had been floated. Several similar short-term continuing resolutions were enacted during the Fiscal Year 2011 appropriations process to keep the government from shutting down, prolonging the negotiating process for months.
In his comments yesterday, the President rejected the option of drawing out the debate. His move significantly ups the ante for a final deal to be reached soon in order to prevent the United States from defaulting on any debt obligations after the August 2nd deadline the Treasury Department has identified. Talks are scheduled to resume on Sunday at the White House.