Key Takeaways:
- US President Joe Biden met with Congressional leaders in the White House.
- The US Government could run out of money in less than ten days.
- Biden is negotiating with the Republican-held House to increase the debt ceiling.
YEREVAN (CoinChapter.com) — Following a subsequent meeting with House Speaker Kevin McCarthy on raising the debt ceiling, US President Joe Biden issued a brief statement underscoring the importance of bipartisan cooperation to prevent a catastrophic default on the United States’ debt obligations.
Although the talks did not yield a final agreement, both sides acknowledged the productivity of the discussions.
“I just concluded a productive meeting with Speaker McCarthy about the need to prevent default and avoid a catastrophe for our economy. 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,”
President Biden said in a statement.
The Democrats and the Republicans had failed to make any breakthrough in the previous round of talks held in the White House.
Treasury Secretary Janet Yellen has warned several times that the government could run out of money by next month. However, the White House and Congress have yet to agree on a plan to see the debt ceiling raised or abolished.
Meanwhile, the Republican House Speaker Kevin McCarthy insisted that the ball is in Joe Biden’s court.
Heeding calls from the Treasury Department, he and his colleagues voted to raise the government’s $31.4 trillion debt ceiling by an additional $1.5 trillion last month. However, they also imposed a 14% cut on the Biden Administration’s spending, which the White House strongly denounced.
President Biden and Democrats expect Congress to raise the US Debt ceiling unconditionally. However, the Republicans are unwilling to grant the Biden Administration free access to more funds.
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President Biden Calls for Collaboration to avoid default
Despite existing sharp disagreements, President Joe Biden and House Speaker Kevin McCarthy affirmed their commitment to ongoing discussions to chart the path forward. The respective lead negotiators, Patrick McHenry, who chairs the House Financial Services Committee, and Congressman Garret Graves, also expressed similar sentiments.
“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,”
Joe Biden said.
Kevin McCarthy also addressed the media following his meeting with the US President at the White House. Although he called the meeting productive, the Republican strongman didn’t hesitate to criticize the delay in the talks.
“Let’s remember how we got here—10 days out from a Biden default on the national debt. He ignored the looming crisis for months, despite my repeated calls to negotiate. Because of his inaction, he risks bumbling into the first default in American history,”
McCarthy wrote, sharing a detailed chart indicating the timeline of the talks.
Citing the limited time available before the Biden Administration must borrow additional funds to meet its obligations, McCarthy anticipated daily communication with Biden, underscoring the situation’s urgency.
President Biden is caught in a race against time. The Republicans have already done their part in ensuring that the US does not default on its bills. It is up to the Democrats now to be a little flexible and go for a compromise. Will they? Time will tell.
