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Schumer, Pelosi: Deal on 'framework' to pay for Biden agenda

Yahoo Finance's Jessica Smith shares the latest on the debt ceiling.

Video Transcript

AKIKO FUJITA: We're tracking a press conference out of Washington right now as we count down to a potential deadline here end of the month when the government essentially runs out of money. We've heard the back and forth debate on whether, in fact, to raise the debt ceiling. Our very own Jessica Smith, tracking that press conference-- press conference for us right now. Jess, what's the very latest?

JESSICA SMITH: Yeah, Majority Leader Schumer, Speaker Pelosi and Treasury Secretary Janet Yellen all came out to Speaker Pelosi's weekly press conference, and they've made some news, but we don't have a lot of details on this yet. They've been pretty vague in their announcement. But they do say that they have a deal on a framework for the revenue portion of President Biden's social spending bill-- so that reconciliation package.

Again, they haven't given us many details, but they say the House, the Senate, and the White House have agreed on a framework that will pay for what they end up coming-- coming up with throughout these negotiations. Speaker Pelosi elaborated a little bit, and she said that they came to terms as a framework on an array of arrangements that we have, depending on what the need is. So there is clearly some-- some work to do here still as they try to come up with an agreement.

Obviously they are in this divide between progressives and moderates, trying to work that out. There were meetings all day yesterday at the White House as they tried to hammer out those details, so it looks like they've made a little progress on this front. They have to try and make enough progress by Monday to get progressives to vote for that bipartisan infrastructure bill. They are threatening to tank it if they don't have enough securities, enough-- enough gives there on the reconciliation side. If they don't have what they want on reconciliation, then they're threatening to tank the bipartisan bill.

Another piece of news that Speaker Pelosi made here is on a separate, but it's still wrapped up in this separate issue going on right now-- the debt ceiling and the government shutdown. Republicans have said that they are not going to vote to lift the debt ceiling. She did say that, depending on what happens on-- in the Senate with the bill that the House already passed, she said that they will come up with a short-term CR to keep the government open-- so a short-term funding bill to keep the government open before September 30, when the government shuts down. The House has already passed a bill that would fund the government and raise the debt ceiling.

It's on the Senate side now, so they're going to see what happens there. Republicans say they're going to block it. But Speaker Pelosi just telling reporters that regardless of what happens, they aim to keep the government open and then continue conversations about the debt ceiling later. So a lot of news coming out of this press conference still going on right now. We'll keep an eye on what they have to say and keep you updated throughout the day.

ZACK GUZMAN: Yes, still some details to come out there. But I mean, we heard from Fed Chair Powell yesterday talking about how the Fed would not be able to help if Congress weren't able to get this one ironed out. Obviously very important when it comes to the state of the economy to have the government functioning.

But Jess, elsewhere in Washington, another problem that the Biden administration has been trying to tackle has been the chip shortage, and hosting a few companies, some big name companies there, including Apple, to discuss how bad the problem is, and what can be done to address it. But what do we know about it? It seems like deja vu, because we've heard them talking about this for quite some time.

JESSICA SMITH: Yeah, and there have been several meetings with companies over the past few months with the administration. But at this meeting, the White House is hoping to get more information from the companies that are most affected by this shorter-- shortage. This one is expected to include Apple, as you mentioned, the big three automakers, Intel, Microsoft, and others. The White House reportedly plans to release a request for information-- a voluntary request this week to get a better understanding of the problem and identify ways that the government could help. Reuters reports that the administration wants comments within 45 days about supply and demand inventory, ordering and customer segments.

The administration is also reportedly working on an early alert system to help mitigate COVID-19 related shutdowns in factories around the world. So the US would work with other governments to try and keep factories going, while making sure worker protections are in place. In just another effort to help relieve the shortage here, because we have seen COVID-19 infections slow output at some factories. So that's some of the issues that they are going to be talking about today-- again, those executives from automakers, Microsoft, Apple, and others. We'll keep you updated on what they have to say throughout this meeting today.

AKIKO FUJITA: OK, Jessica Smith, appreciate the updates. I'll let you get back to that press conference. And, of course, we'll bring you any developments as they come in.