After an hour of talks, Mr McCarthy told reporters that the two sides were still some way off a deal to lift the US government's debt ceiling. But he said: "A deal could be reached by the end of the week. It's not that hard to reach a deal."
President Joe Biden and House Speaker Kevin McCarthy (left) meet to discuss ways to prevent the US from defaulting on its debt. Photo: Reuters
The White House also called the meetings “productive and direct.” “There is still much work to be done… We are on a path forward to ensure America does not default,” Biden said.
President Biden said he was disappointed that Republicans would not consider 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.
In addition to Biden and McCarthy, the key meeting included Senate Majority Leader Chuck Schumer, Senate Republican Leader Mitch McConnell and House Democratic Leader Hakeem Jeffries. Their aides had met earlier this weekend to discuss the deal.
The Republican majority in the US House of Representatives has refused to vote to raise the debt ceiling beyond the $31.3 trillion limit unless President Biden and his Democratic Party agree to cut spending in the federal budget. However, McConnell said after the meeting: "We know we will not default."
The US government could default on its debt as early as June 1 unless Congress votes to lift the debt ceiling, and economists fear the country will slide into recession. The White House said Mr Biden remains "optimistic that there is a path to a bipartisan budget agreement... if both sides negotiate in good faith".
The White House said Mr Biden, who departs for Japan on Wednesday for the G7 summit, is expected to continue speaking with US officials later this week by phone and meet with them when he returns from overseas.
Uncertainty around the debt ceiling has led to Mr Biden skipping planned stops in Papua New Guinea and Australia, after attending the G7 summit in Hiroshima, Japan.
The US faced a similar impasse in 2011 over the debt limit that led to a downgrade of its credit rating, triggering a stock sell-off and pushing up US government borrowing costs.
The current impasse has rattled investors, sending the cost of insuring U.S. government debt to record highs. A Reuters/Ipsos poll on Monday found three-quarters of Americans fear a default would be devastating for their families.
Hoang Anh (according to Reuters)
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