Biden and McCarthy to meet at White House on Monday to try to avoid looming debt default

As a imaginable indebtedness default looms conscionable 11 days away, President Joe Biden and House Speaker Kevin McCarthy, R-Calif., volition conscionable successful idiosyncratic astatine the White House connected Monday to resume negotiations astir the indebtedness ceiling, NBC News reports.

McCarthy told reporters that helium had a "productive" telephone with Biden connected Sunday, and that unit members for some parties volition resume talks aboriginal that aforesaid day. A White House spokesperson confirmed to NBC News that unit would restart negotiations astatine 6 p.m. Sunday, and that Biden and McCarthy volition conscionable connected Monday. It is not yet known what clip the gathering volition begin, according to NBC News.

Lifting the debt ceiling is indispensable for the authorities to screen spending commitments already approved by Congress and the president successful bid to forestall default. Raising the indebtedness ceiling does not authorize caller spending, but House Republicans person said they volition not assistance the bounds if Biden and lawmakers bash not hold to aboriginal spending cuts.

As a result, the on-again, off-again deliberations connected Capitol Hill have been tense.

Biden said earlier Sunday that Republicans "need to determination from their utmost position" during a property league up of his departure from the Group of Seven Summit successful Japan. After negotiations stalled precocious Saturday, Biden said helium planned to telephone McCarthy connected his mode backmost to Washington.

"It's clip for Republicans to judge that determination is nary bipartisan woody to beryllium made solely, solely, connected their partisan terms," Biden said.

McCarthy told reporters Sunday aft arriving astatine the Capitol that helium is gladsome the president is returning to the U.S.

"I deliberation he's got to get distant from the socialist helping of the Democratic Party and correspond America. And that means some sides person to person compromise," McCarthy said Sunday. "I've been determination the full time."

Treasury Secretary Janet Yellen said Sunday that "hard choices" volition request to beryllium made astir which bills volition spell unpaid if the indebtedness ceiling is not raised.

Yellen reaffirmed her informing that the United States could default connected its indebtedness arsenic early arsenic June 1, which she has said could origin wide "economic chaos." There volition beryllium nary bully result if Congress fails to instrumentality action, she said.

"We're focused connected raising the indebtedness ceiling, and determination volition beryllium hard choices if that doesn't occur," she told NBC's "Meet the Press." "There tin beryllium nary acceptable outcomes if the indebtedness ceiling isn't raised, careless of what decisions we make."

At the Independent Community Bankers of America Capital Summit connected Tuesday, Yellen said the White House Council of Economic Advisers recovered that a default could pb to an economical downturn arsenic atrocious arsenic the Great Recession, with 8 cardinal Americans losing their jobs and the banal market's worth falling by astir 45%.

She besides noted a Moody's Analytics study which recovered akin numbers, with much than 7 cardinal Americans retired of enactment and $10 trillion successful household wealthiness evaporated. Yellen besides warned that a indebtedness ceiling breach could impact indispensable authorities services.

Biden said Sunday helium thinks an statement tin beryllium reached with Republicans, but that it is not certain.

"I can't warrant that they wouldn't unit a default by doing thing outrageous," helium said.