WASHINGTON D.C. (NBC) – The pressure to raise the debt ceiling is growing more intense as the June 1st deadline approaches. Jobs, the country’s reputation, and the future of the economy are all on the line.
Two sides say they are ironing out their differences. The treasury again warned of the severe consequences of a default.
There was no deal on raising the debt limit Tuesday morning following a high-stakes meeting between President Biden and House Speaker Kevin McCarthy. Both called the one-on-one talk productive.
“We only talked about where differences were,” McCarthy said. “We talked about items that… ideas to find that. So we’re asking the staff to get back and run through those ideas to see if we could come to an agreement.”
President Biden expressed optimism even before the meeting started. “We still have some disagreements,” he explained. “But I think we may be able to get where we have to go.”
Negotiation teams held late-night talks on Capitol Hill where divisions over spending cuts remain.
Representative Patrick McHenry (R-NC) said, “It was very important that we spend less money next year than we’re spending this year. That was imperative to us.”
House Minority Leader Hakeem Jeffries (D-NY) said, “President Biden has offered House Republicans to freeze spending at current fiscal year levels. The extreme MAGA Republicans have rejected that.”
In a letter to congressional leadership, Treasury Secretary Janet Yellen doubled down on the June 1st deadline, warning a default could cause severe hardship to American families.
Across the country there’s a growing sense of frustration with Social Security checks and other benefits hanging in the balance, there’s increasing pressure on federal leaders to act.
Speaker McCarthy said that new tax revenues and military spending cuts are off the table when it comes to reducing the deficit.
President Biden didn’t speak publicly after meeting with McCarthy, but in a statement said the talks were productive and that he and Speaker McCarthy agreed, the only way to move forward is with a good faith, bipartisan agreement.
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