On Tuesday, President Joe Biden will meet with congressional leaders, including top Republicans, in the Oval Office to discuss the impending default crisis, although expectations for progress are low.
Joe Biden and House Speaker Kevin McCarthy have little time to act, making this meeting a significant step forward. The White House has thus far refused to negotiate the debt ceiling itself, but both sides agree that a resolution is necessary to avoid a catastrophic economic disaster, per NBC News.
According to a White House aide, the president is determined to emphasize the importance of resolving the US debt limit and preventing default during the meeting
Tuesday's meeting between the POTUS and Congressional leaders marks the first time since February that President Biden and House Speaker Kevin McCarthy will meet to discuss the issue of debt and spending, according to ABC News.
The past few months have been filled with ongoing negotiations, with President Joe Biden and Democrats pushing for a debt ceiling increase without any conditions attached, while Kevin McCarthy and Republicans insist on spending cuts and other budget changes.
Despite both sides publicly expressing a desire to avoid default, recent comments show they are still far apart in resolving.
US Congress Will Determine The Outcome
White House spokesperson Karine Jean-Pierre refrained from setting expectations for Tuesday's meeting, describing it as a "conversation" between the US government leaders.
Office of Management and Budget Director Shalanda Young reiterated that it is Congress' responsibility to prevent a US government default and that nothing is preventing them from taking action to do so.
The US reached the debt ceiling set by Congress in January, prompting the Treasury Department to take extraordinary measures to keep the government functioning. However, Treasury Secretary Janet Yellen recently warned that the US government could default as early as June 1 if Congress does not address the debt limit, according to CNN.
According to Moody's Analytics, a breach of the debt limit may have disastrous repercussions, including missed Social Security payments, missed payments to veterans and government workers, and huge losses to American investors' capital.
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