Quick Glance: McCarthy and Biden Have 'Productive' Debt Ceiling Talks - But No Agreement Despite Looming Default
- President Joe Biden and House Speaker Kevin McCarthy (R-Calif.) both described their Monday evening meeting to discuss raising the debt ceiling as 'productive' - but differences between the two leaders still exist as a June 1 deadline to avert a federal default gets closer.
- McCarthy said the tone of the meeting was better than any previous negotiation, but he did not hear anything from the president indicating that the two had reached common ground beyond their shared desire to strike a deal.
- According to McCarthy, there are no Pentagon cuts or tax increases on the table, two areas where potential disagreements with the White House could arise. McCarthy added that he opposes a short-term debt ceiling increase.
- Treasury Secretary Janet Yellen reaffirmed on 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. A default on federal obligations would jeopardize the fulfillment of federal commitments and most experts believe it would be economically disastrous.
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