President Biden, House Speaker McCarthy to meet amid debt ceiling concerns

Yahoo Finance’s Kevin Cirilli joins the Live show to discuss the latest political headlines happening out of Washington, D.C.

Video transcript

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BRIAN SOZZI: The GOP-led House is set to vote on a series of pandemic related bills this week. Meanwhile, the Senate is working toward organizing a resolution to establish rules for the new Congress as it prepares to tackle the debt ceiling. For the latest on Capitol Hill, let's get to Yahoo Finance contributor, Kevin Cirilli. Kevin?

KEVIN CIRILLI: Well, big news from House Speaker Kevin McCarthy on CBS "Face the Nation" over the weekend, in which he essentially said that they want to get to a point where they can raise the debt ceiling. So if you're looking at this from a market analytics standpoint, he's essentially giving you the outcome that he wants. Now, the path to get there is where things are going to potentially go haywire, as Republicans are going to continue to advocate for reducing what they describe as wasteful spending.

But here's what he said on the Sunday show. Quote, "I want to find a reasonable and a responsible way that we can lift the debt ceiling, but take control of this runaway spending. I want to sit down together, work out an agreement that we can move forward to put us on a path to balance, at the same time, not put any of our debt in jeopardy at the same time."

He said that to Margaret Brennan. He's meeting with President Biden on Wednesday. Now, we should note, we're going to get a lot of economic indicators this week, some of which we're going to get on Wednesday.

JULIE HYMAN: Yeah, and let's talk about that, Kevin. We got a busy week on the economic front. We got the Fed meeting, we got jobs data.

KEVIN CIRILLI: Well, as you know, most folks are anticipating that the Fed's going to raise the interest rate hike by 25 basis points, a quarter of a percentage point, and on Friday, we're going to get that jobs data from January. I think most folks are anticipating that the US added about 170 to 190,000 jobs in the month of January. That would tick up the unemployment rate to 3.6%, at its current level of 3.5%. Either way, it's this new fight in Washington about whether or not the policy is leading to a recession. We just heard from Mike, whether or not the economy is going to bottom out this year, and it's what Republicans and Democrats are going to be bickering about over the next few months and front and center is going to be that debt ceiling debate.

BRAD SMITH: Kevin, while we have Secretary of State Antony Blinken has embarked on a trip to Beijing to meet with senior Chinese officials, so what can we expect to come of that?

KEVIN CIRILLI: Well, right now, he's going to be in the Middle East and he's going to be meeting with Israeli Prime Minister Netanyahu, and then separately with Palestinian leaders. This comes as tensions have flared in the region. And then he heads to Beijing. And based on the reports, the backdrop to that meeting in Beijing, this week end, early next week, is going to be whether or not the Communist Party of China is helping Russia and Russia's war with Ukraine.

Now, the US has really sought to pressure China to distance itself from Russia, but who knows? There's been some reporting by "Bloomberg" and the likes that some Chinese companies have been aiding and abetting in a non-lethal capacity, but also economically, some Russian companies to skirt some of the sanctions and export controls that the US has put into place. China denies this, but that really does become the starting point for this high-profile meeting between Secretary Blinken and his Chinese counterparts. And dare I say, I could not end this segment talking to you, my friend, without noting how absolutely happy I was--

BRAD SMITH: My good man, yes.

KEVIN CIRILLI: My New York colleague celebrate-- I got to say, I love New York, and here's why. When the Empire State Building is in Eagles green.

BRAD SMITH: Had to be a fan.

KEVIN CIRILLI: I was blown away. I was heartened. And we're such a humble fan base.

BRAD SMITH: We are. We really are.

KEVIN CIRILLI: To be able to beat the Dallas Cowboys and then San Francisco, and now we're going to the Super Bowl. I mean, just, could you get any happier on a Monday?

BRAD SMITH: You really couldn't. I had to bring out my Wawa tumbler for today's show as well. Yes.

KEVIN CIRILLI: I have mine over there. Wait, I have the same exact one.

BRAD SMITH: It had to be done.

KEVIN CIRILLI: But I feel like I'll get in trouble if I run out of frame. But--

JULIE HYMAN: You can bring it next time. You can bring it next time.

BRAD SMITH: Yes. There are more hits to be done today, Kevin.

KEVIN CIRILLI: Yeah. Hey, anytime. Give me a call.

BRAD SMITH: It is a beautiful day to bleed green, indeed, and even the Empire State Building got in on the action. Kevin, I think both of us are probably going to have to bake in a personal or mental health day either win or loss after February 12.

KEVIN CIRILLI: Hey, we're going to win. You got to manifest. This we're going to win. And no offense to Kansas City, but I think the Philadelphia Eagles are America's team. Am I right or am I right?

BRAD SMITH: Ask Jerry Jones. I believe he thinks the same. Yes. Kevin, thanks so much, man.

KEVIN CIRILLI: Thank you. Yes. See you guys. Thanks.