After an hour of talks, McCarthy told reporters the two sides remained far apart on a deal to raise the debt ceiling. But he said: “It is possible to reach an agreement by the end of the week.”
However, Democrats weren’t as confident a deal could be reached so quickly, though the White House called the meetings “productive and straightforward.”
“There’s still work to do,” Biden said after the meeting, “we’re moving forward to make sure America doesn’t default on its debt.”
Biden expressed disappointment that Republicans aren’t looking for ways to raise revenue. Raising taxes on the wealthy and corporations to help pay for programs for other Americans is a key part of Biden’s 2024 budget.
Biden met McCarthy at the White House with Senate Majority Leader Chuck Schumer, House Democratic Caucus Leader Hakeem Jefferies and Senate Republican Leader Mitch McConnell in attendance, after their aides met over the weekend to try to reach an agreement.
Republicans are refusing to vote to raise the debt ceiling beyond the $31.3 trillion limit unless Biden and his fellow Democrats agree to cut federal budget spending. However, McConnell said after the meeting that “we know we’re not going to default.”
Only days left
The US government could default on some debt as early as June 1 unless Congress votes to raise the debt ceiling, and economists fear the country could slide into recession.
The White House said Biden was “optimistic about the path to a responsible bipartisan budget deal, provided they negotiate in good faith and realize that neither will get everything they want.” they want”.
Uncertainty over the debt ceiling prompted Biden to cancel his visit to Papua New Guinea and Australia after attending the G7 summit in Hiroshima, Japan, which he will travel to on Wednesday.
“We have a lot of work ahead of us in a short period of time,” McCarthy told reporters, noting that the Oval Office session set the stage for future discussions.
“We can raise the debt ceiling if we put a limit on what we will spend in the future,” he added.
A similar standoff in 2011 over the debt ceiling led to a historic downgrade in the United States’ credit rating, triggering a stock sell-off and raising government borrowing costs.
The current standoff has spooked investors, sending the cost of insuring US government debt to record highs. A Reuters/Ipsos poll on Monday showed that three-quarters of Americans fear defaulting on a payment will have a serious impact on their family.
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