The previously unreported talks involving the GOP economic grandees — Henry Paulson, who served as treasury secretary under President Bush; and Steven Mnuchin, treasury secretary under President Trump — did not resolve the matter and the U.S. is now racing toward a massive fiscal cliff with no clear resolution at hand.
Paulson and Mnuchin have in recent weeks spoken with both McConnell and [treasury secretary Janet] Yellen as the Biden administration tries to ensure the U.S. does not default on its debt obligations and spark a global financial crisis. …
Paulson met with McConnell in his office in the U.S. Capitol last week and discussed the debt limit standoff, two people familiar with the exchange said. Paulson primarily listened to McConnell’s views on the matter as the Senate GOP leader made clear he was not bluffing about Democrats having to raise the debt limit without Republican support. …
After the discussion, Paulson told the Biden administration that McConnell is serious that Democrats must approve the debt ceiling hike on their own through the budget reconciliation process, given their control of Congress and the White House and their pursuit of a partisan spending package, [four] people said.