Topline
President Joe Biden and House Speaker Kevin McCarthy (R-Calif.) both described a Monday evening meeting to discuss raising the debt ceiling as “productive”—though differences between the two leaders still loom as a June 1 deadline to avert a federal default moves closer.
House Speaker Kevin McCarthy of Calif., speaks as he meets with President Joe Biden to discuss the … [+]
Key Facts
No agreement was reached following another negotiation at the White House on how to manage the U.S. debt ceiling and avoid a default, McCarthy told reporters on Monday—but the two leaders reaffirmed their desire to reach an agreement.
In a statement Monday evening, Biden called the meeting “productive”—the same word McCarthy used—but said there are still “areas of disagreement.”
McCarthy said the tone of the meeting was better than any previous negotiation, but beyond their shared desire to strike a deal, he did not hear anything from the president indicating that the two had reached common ground.
No Pentagon cuts or tax increases are on the table, according to McCarthy, two areas of potential disagreement with the White House—and McCarthy added he’s against a short-term debt ceiling increase.
What To Watch For
Treasury Secretary Janet Yellen reaffirmed Sunday that June 1 is a hard deadline for the federal government to raise the debt ceiling before it is no longer able to pay its bills, triggering a first-ever default on federal obligations that most experts say would be economically disastrous.
Key Background
McCarthy and Biden have not been on the same page during their talks, but the positive tone McCarthy spoke about Monday is a change of pace from recent discussions. Late last week, Republican lawmakers walked out on negotiations after hearing “unreasonable” requests from the Biden Administration. Republicans are seeking to cut non-defense spending and change some Biden-era policies, while Biden is offering a two-year cap on all discretionary federal spending, the New York Times reports. In remarks before Monday’s meeting, Biden also mentioned disagreements over tax increases, including his preference for eliminating tax loopholes and “making sure the wealthy pay their fair share.”
Further Reading
Differences Remain After Biden Meets With McCarthy (New York Times)
Debt ceiling negotiations continue as default deadline looms (CNN)
Yellen Reaffirms June 1 Debt Default Warning—As GOP Doubts Deadline (Forbes)
Source: https://www.forbes.com/sites/antoniopequenoiv/2023/05/22/mccarthy-and-biden-hold-productive-debt-ceiling-talks-but-still-no-deal-as-default-looms/