Biden, McCarthy Show Optimism Regarding Debt Ceiling Negotiations

Joe Biden and Kevin McCarthy show optimism regarding a potential deal on the debt ceiling
The situation comes after the two officials met at the White House on Tuesday to talk about the issue
McCarthy said that it is possible to have an agreement by the end of the week

United States President Joe Biden and Republican House Speaker Kevin McCarthy showed optimism regarding a potential deal on the debt ceiling following talks at the White House.

The two officials have now edged closer to agreeing on a deal amid the looming United States default on Tuesday. The situation comes with a threat of an economic nightmare that forced the Democratic president to cut his Asia trip this week short.

Biden, McCarthy Show Optimism for Potential Debt Ceiling Deal

Biden and McCarthy spent roughly an hour discussing a potential deal, but the two remained far apart on an agreement to lift the country's debt ceiling. However, the House Speaker said they could agree on a deal by the end of the week, as per Reuters.

On the other hand, Democratic officials were not as optimistic about a quick agreement, but the White House said that the meetings were both productive and direct. The president added that they agreed during the meeting that defaulting on the debt is "simply not an option."

During an event at the White House honoring Jewish Americans, Biden said that the parties were already on the road toward ensuring that the U.S. does not default on its debt for the first time.

Biden added that he was disappointed that Republican lawmakers were unwilling to consider other ways to raise revenue. A key part of the president's 2024 budget is raising taxes on the rich and companies to pay for programs for other Americans.

Democrats and Republicans have both viewed the Tuesday talks as a make-or-break moment. The situation now is much more tense as there are only 16 days left before the potential default, according to the New York Times.

Avoiding a Potential Default

The negotiations between Biden and McCarthy also seemingly removed any pretense that the left was only willing to accept a clean debt limit increase without conditions from House GOP members.

For several weeks, the president maintained that negotiating over cuts should not be a condition for raising the debt limit. However, Democratic leaders from New York, Majority Leader Sen. Chuck Schumer and Minority Leader Rep. Hakeem Jeffries, said that passing a bipartisan bill is the only way to proceed.

Schumer noted that he and Jeffries were committed to getting a bipartisan deal done but argued that they would not accept sacrifices of their values. The official added that they need to come together to avoid a default.

Some progressive lawmakers warned President Biden that he should not give in in his attempt to get a debt ceiling agreement. Alexandria Ocasio-Cortez said that the White House should not normalize destructive tactics such as pushback from opposition lawmakers, said Business Insider.