Mitch McConnell offers short-term debt ceiling extension following

Senate Minority Leader Mitch McConnell on Wednesday offered a short-term suspension of the U.S. debt ceiling to avert a national default and economic crisis until Democrats are able to pass a more permanent solution before the end of the year.

“To protect the American people from a near-term Democrat-created crisis, we will also allow Democrats to use normal procedures to pass an emergency debt limit extension at a fixed dollar amount to cover current spending levels into December,” he said in a statement posted to Twitter.

“This will moot Democrats’ excuses about the time crunch they created and give the unified Democratic government more than enough time to pass standalone debt limit legislation through reconciliation,” the Kentucky Republican added.

The development came as President Joe Biden and Democratic leaders in Congress amped up pressure on Republicans to act on the debt limit.

The stopgap offer from McConnell would take some pressure off both parties to reach a compromise by Oct. 18, when the Treasury Department estimates the U.S. will otherwise exhaust its emergency efforts to pay the government’s bills.

McConnell on Wednesday reiterated that the GOP would also assist Democrats in expediting a reconciliation bill to lift the borrowing cap if Democratic leadership wanted to address the borrowing cap before the October deadline.

White House press secretary Jen Psaki offered somewhat cool comments for the McConnell proposal later Wednesday.

“My understanding is that there has been no formal offer made, a press release is not a formal offer. And regardless, even the scant details that have been reported present a more complicated, more difficult option than the one that is quite obvious,” Psaki said.

“We could get this done today, we don’t need to kick the can, we don’t need to go through a cumbersome process that every day brings additional risks,” she added.

Most economists say that a U.S. default would spell economic calamity, and Treasury Secretary Janet Yellen warned Tuesday that she would “fully expect” a recession if that happens. Biden echoed her on Wednesday, saying that default would “lead to self-inflicted wounds that risk the market tanking and wiping out savings and costing jobs.”

Republicans and Democrats have clashed in recent weeks over how best to raise or suspend the federal borrowing limit and it was not immediately clear if House Speaker Nancy Pelosi, D-Calif., or Senate Majority Leader Chuck Schumer, D-N.Y., would be open to McConnell’s potential plan.

Representatives for Pelosi and Schumer did not immediately respond to CNBC’s request for comment.

McConnell and Schumer are set to meet later Wednesday, according to Texas Republican Sen. John Cornyn, which could lead to greater clarity on a possible agreement.

During the past week, the…