Critical debt limit summit between Biden and McCarthy

US President Joe Biden and US House Speaker Kevin McCarthy met once again to discuss the debt limit.

Biden and McCarthy had another meeting at the White House, as the federal government in the US has reached the $31.4 trillion debt limit and the extraordinary measures taken by the Treasury Department since January to prevent it from being exceeded the borrowing limit are exhausted and there are no less than 10 days left to run out of cash. .

Giving a brief assessment before the closed-door meeting, Biden said he believes they will move on the debt limit.

Biden stressed that they agree that the budget deficit must be reduced and that a bipartisan agreement is necessary.

President Biden asserted that tax gaps should be investigated and that the richest pay their fair share, adding that there was disagreement on this issue.

House Speaker McCarthy said there were disagreements, but both sides agreed the debt was too great and this trajectory needed to change.

“I think we can make a deal”

“We haven’t come to an agreement yet, but I felt the discussion was fruitful in areas where we had disagreements,” McCarthy said at the post-meeting news conference.

Stating that the staff will meet again and continue to work on the issues discussed, McCarthy argued that the problem is not revenue but expenses.

When asked if the Americans should prepare for default, McCarthy replied “No”, but expressed his belief that a deal could be reached.

YELLEN REPEATS ‘JUNE 1’ WARNING

Separately, US Treasury Secretary Janet Yellen has sent a new letter to US House Speaker Kevin McCarthy to share an update on the debt limit.

In the aforementioned letter, Yellen said that it was estimated that the Treasury would no longer be able to meet all of the government’s obligations if Congress did not raise or suspend the debt limit by early June, and potentially on June 1.

Reiterating that this estimate is based on available data, federal revenue, spending and debt may differ from these estimates, Yellen said she will continue to provide information to Congress as more data becomes available.

“If Congress does not increase the debt limit, it will cause serious hardship for American families, undermine our position as a world leader, and cast doubt on our ability to defend our national security interests. I continue to urge Congress to act as soon as possible to preserve the full trust and dignity of the United States.” he used his statements. (AA)