U.S. President Joe Biden and House Speaker Kevin McCarthy held discussions yesterday, Monday, but they ended without reaching an agreement on how to raise the U.S. government's debt ceiling of $31.4 trillion.
McCarthy told reporters after a one-hour meeting with Biden in the Oval Office, "I feel we had a productive discussion. However, we do not have an agreement yet," emphasizing that "negotiators from both sides will continue consultations."
For his part, Biden expressed optimism about the possibility of making progress before the meeting, stressing that "both sides need an agreement supported by both parties to convince their bases." In a statement following the meeting, Biden reiterated that "default is not an option on the table."
The two sides now have only ten days to reach an agreement to raise the federal government's debt ceiling; otherwise, the government may face an unprecedented default on its obligations. Experts warn that this scenario could lead to a recession.
The Democratic president and the leading Republican politician in Congress are both striving to make progress towards an agreement, with McCarthy pressuring the White House to agree to federal budget cuts, which Biden has deemed "harsh." In contrast, Biden has called for new taxes on the wealthy, which Republicans reject.
Congress must approve any agreement to raise the debt ceiling in both the House and the Senate, requiring bipartisan support. Republicans control the House, while Democrats control the Senate.
