Reuters reported that US President Joe Biden and House Speaker Kevin McCarthy held a “productive” phone call on May 21 about the ongoing impasse over the debt ceiling. The two sides agreed to meet in person today, May 22, immediately after Mr. Biden returns to Washington from his trip to Asia.
Specifically, speaking after the call, Mr. McCarthy said he and Mr. Biden had positive discussions about how to resolve the crisis and that lower-level negotiations between officials would resume. Mr. McCarthy added that this discussion was “better” than previous ones, because although there was still no final agreement, the parties agreed to resume negotiations.
US President Joe Biden at the G7 meeting in Japan on May 20
“What I’m looking at is where our differences are and how we can resolve those, and I feel that part is helpful,” Mr. McCarthy told reporters.
Meanwhile, speaking from the G7 summit in Japan, Mr Biden said he was willing to cut spending along with tax adjustments to reach a deal, but said the latest proposal from Republicans on a cap was “unacceptable”.
“Much of what they have proposed is simply unacceptable. It is time for Republicans to accept that no bipartisan deal will ever be done alone, on their partisan terms alone. They must change too,” Mr. Biden said.
On Twitter, Mr Biden said he would not agree to a deal that includes provisions that protect subsidies for big oil and “wealthy tax dodgers” while putting health care and food assistance for millions of Americans at risk.
Last month, the Republican-controlled House passed legislation to cut government spending by 8% next year. Democrats say that would force programs like education and law enforcement to be cut by an average of at least 22%.
Mr. Biden also said that some Republican lawmakers are willing to see the United States default on its debt in the hope that the disastrous consequences will prevent him from being re-elected in 2024, CNN reported.
There is just over a week to go until June 1, the day the US Treasury Department warns that the US will default on its debt if the federal government cannot pay all its debts. The prospect of default would have catastrophic consequences for the world economy, with US federal workers being laid off, global stock markets being hit hard and the US economy possibly falling into recession.
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