![]() ![]() McCarthy told reporters at the Capitol on Sunday that the call was “productive" and that the on-again, off-again negotiations between his staff and White House representatives would resume in the evening.īoth sides have said progress was being made but that they remain far apart, and talks had lapsed for part of the weekend. The leaders spoke by phone Sunday while the president was returning home on Air Force One after the Group of Seven summit in Japan. "I continue to urge Congress to protect the full faith and credit of the United States by acting as soon as possible," she concluded. If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests." "In fact, we have already seen Treasury’s borrowing costs increase substantially for securities maturing in early June. ![]() "We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States," Yellen wrote. In 2011, the country's credit rating was downgraded after a similar default standoff was narrowly averted. She also once again warned of the possibility that even flirting with default could prove disastrous. "With an additional week of information now available, I am writing to note that we estimate that it is highly likely that Treasury will no longer be able to satisfy all of the government’s obligations if Congress has not acted to raise or suspend the debt limit by early June, and potentially as early as June 1," Yellen wrote in a letter to congressional leadership on Monday. "We both know we have a significant responsibility."Īhead of the meeting, Treasury Secretary Janet Yellen warned that it is "highly likely" that her department can no longer be able to cover the country's obligations if an agreement is not reached soon. "We still have some disagreements, but I think we may be able to get where we have to go," the president said. "I think we were really able to focus on the areas of difference," he said, later adding the White House negotiators were "the most professional I've ever seen."Īs the leaders gathered at the White House, Biden said he was "optimistic we’re going to make some progress." McCarthy said that their respective staffs will continue meeting to try and come to an accord, adding that the tone of the meeting "was better than any other time we've had discussions." ![]() "While there are areas of disagreement, the Speaker and I, and his lead negotiators Chairman McHenry and Congressman Graves, and our staffs will continue to discuss the path forward," the president added. "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." "I just concluded a productive meeting with Speaker McCarthy about the need to prevent default and avoid a catastrophe for our economy," Biden said. In a statement after the meeting, Biden expressed similar sentiments. "We don't have an agreement yet, but I did feel the discussion was productive in areas that we have differences of opinion." "I felt we had a productive discussion," the California Republican said. ![]() stability, sending shockwaves through the global economy A default would be damaging for many Americans and people the world over relying on U.S.Ahead of the meeting, Treasury Secretary Janet Yellen warned that it is "highly likely" that her department can no longer be able to cover the country's obligations if an agreement is not reached soon.Speaking outside the White House after the meeting, McCarthy called the meeting "productive," but said that the two sides have not yet reached an agreement.President Joe Biden and House Speaker Kevin McCarthy met late Monday at the White House with just days remaining before the U.S. ![]()
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