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President Joe Biden and House Speaker Kevin McCarthy could not reach an agreement Monday on how to raise the U.S. government’s $31.4 trillion debt ceiling with just 10 days before a possible default that could sink the U.S. economy, but vowed to keep talking.
The Democratic president and the top congressional Republican have struggled to make a deal, as McCarthy pressures the White House to agree to spending cuts in the federal budget that Biden considers “extreme,” and the president pushes new taxes that Republicans have rejected.
“We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement,” Biden said in a statement after the meeting, which he called “productive.”
McCarthy told reporters after over an hour of talks with Biden that negotiators are “going to get together, work through the night” to try to find common ground.
“I felt we had a productive discussion. We don’t have an agreement yet,” McCarthy said. “I believe we can still get there.”
He said he expected to talk to Biden every day. But he was not willing to consider Biden’s plan to cut the deficit by raising taxes on the wealthy and closing tax loopholes for the oil and pharmaceutical industries. McCarthy was focused on reducing spending in the 2024 federal budget.
Democrats and Republicans have just 10 days to reach a deal – until June 1 – to increase the government’s self-borrowing limit or trigger an unprecedented debt default that economists warn could bring on a recession.
Biden said before the meeting started that he was “optimistic” they could make some progress. Both sides need a bipartisan agreement to “sell it” to their constituencies, he said, adding there may still be some disagreements.
Treasury Secretary Janet Yellen on Monday offered a…
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