Biden and McCarthy Still Cannot Get Debt-Ceiling Deal Done

The U.S. President Joe Biden met with the House Speaker Kevin McCarthy on Tuesday to talk on the debt ceiling that could potentially lead to a default in early June.

After the talks, McCarthy told reporters that both of them remained far apart on an agreement to a deal in lifting the debt ceiling. However, he said that it is possible to get a deal by the end of the week, adding that it is not that difficult to get to an agreement.

Still, the White House called the meetings on Tuesday “productive and direct.” Biden said that he and McCarthy reached an overwhelming consensus that defaulting on the debt is not an option as the U.S. economy would fall into recession if that happens.

Republicans have been refusing to vote to lift the debt ceiling above its $31.3 trillion limit unless the president and his party agree to cut the budget, including a claw back on unused Covid-19 funds and halting President Joe Biden’s student loans forgiveness.

The U.S. Treasury Secretary Janet Yellen tirelessly warned the congress that the Treasury would run out of cash management maneuvers to dig it out unless the ceiling is raised by early June.

Still, Senate Republican leader Mitch McConnell who also attended the meeting with McCarthy and Biden said with confidence that the U.S. will not go into default.

Meanwhile, Biden said he was disappointed that Republicans do not consider ways to raise revenue such as raising taxes on the wealthy and companies to help pay for programs for other Americans.