The White House has said it will not negotiate with Republicans to extend the debt ceiling, while House Speaker Kevin McCarthy has vowed not to extend the limit without a corresponding reduction in the federal budget. According Bloomberg Neither side appears ready to budge ahead of a possible meeting, and McCarthy and Senate Minority Leader Mitch McConnell have not even confirmed their intention to attend. A White House spokesperson stressed that the invitation should not be interpreted as a softening by Biden of his refusal to negotiate a debt ceiling.
US Treasury Secretary Janet Yellen told lawmakers on Monday that the United States was at risk of default as early as June 1. Senior Federal Reserve and Treasury officials have said a default could be catastrophic for the U.S. economy, raising the cost of borrowing on credit cards, mortgages and auto loans and hitting markets.
Biden plans to use the White House meeting to pressure Republicans to raise the national debt ceiling and express their willingness to discuss spending cuts separately during federal budget talks, an official said. White House spokesman. McCarthy, whose calls for a meeting with Biden intensified after House Republicans passed their debt repayment plan last week, said his party would not raise the spending cap without cutting the federal budget. “President Biden has refused to do his job, threatening to plunge our country into the first-ever default, and time is running out,” he said in a statement late Monday.
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