As US debt default draws increasingly closer, President Joe Biden met with Republican House Speaker Kevin McCarthy and other congressional leaders at the White House on Tuesday afternoon. The closed-door talks come amid warnings that the US could default on its ability to meet all balance-of-payments obligations by early June without action. Thus far, Republicans and Democrats have not been able to find common ground on the issue.
Republicans hope to negotiate broad cuts to federal spending in exchange for allowing new borrowing to avoid default. Democrats — including Biden — have been reluctant to give way and POTUS is likely to solidify their stance when it comes to crediting the country’s full confidence and being “hostage” to the talks. He is expected to confirm his willingness to hold talks on this. Only after the default, the budget is no longer a threat.
While nothing close to a final agreement on raising the debt ceiling is expected to emerge from the meeting, it will be closely scrutinized by global investors, US voters and Washington lawmakers.
POTUS is also set to travel to New York’s Hudson Valley on Wednesday to once again press Republicans to pass a clean debt ceiling increase and highlight how a House Republican plan could cut veterans’ health care visits. , will cut support staff in schools and Meals on Wheels. senior.
McCarthy, whose party holds only a slim majority in the House, wants to tie a vote on the debt ceiling to broad spending cuts the White House sees as harsh. Earlier in the day, he also ruled out the possibility of a short-term debt-limit extension, calling for the issue to be resolved “now”. The White House also separately today closed the door on a short-term solution.
(with inputs from agencies)
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