Biden and McCarthy to meet on the debt ceiling with only 10 days until U.S. risks default

WASHINGTON — White House negotiators and representatives of House Speaker Kevin McCarthy resumed indebtedness ceiling talks Monday morning, arsenic President Joe Biden prepared to conscionable with McCarthy look to look with lone 10 days to spell until the U.S. risks default.

The talks came aft a melodramatic play during which negotiations broke down Friday implicit an evident impasse connected authorities spending levels, but resumed respective hours later.

Biden and McCarthy spoke by telephone Sunday evening, talks they described arsenic "productive," and which could acceptable the signifier for anticipated advancement towards a woody successful the archetypal portion of this week. Biden and McCarthy are acceptable to conscionable astatine 5:30 p.m. ET successful the Oval Office connected Monday.

The White House team, comprised of statesmanlike counsellor Steve Ricchetti, Office of Management and Budget Director Shalanda Young and legislative affairs manager Louisa Terrell, declined to talk with reporters arsenic they walked into the Capitol for talks with McCarthy's broadside Monday.

Treasury Secretary Janet Yellen reaffirmed connected Sunday that June 1 is the government's "hard deadline" to rise the indebtedness bounds oregon look a apt archetypal ever nationalist indebtedness default.

"We expect to beryllium incapable to wage all of our bills successful aboriginal June, and perchance arsenic soon arsenic June 1," Yellen told NBC's Meet the Press.

"My appraisal is that the likelihood of reaching June 15, portion being capable to wage each of our bills, is rather low," she said, with the caveat that determination would ever beryllium uncertainty astir nonstop gross and payments.

Both Biden and McCarthy person acknowledged that 1 of the main sticking points successful the talks remains the question of spending caps, a cardinal GOP request but a reddish enactment truthful acold for the White House. Raising the indebtedness bounds would not authorize caller spending, but Republicans person propulsion to chopped authorities outlays arsenic portion of a woody to hike the borrowing limit.

As Biden presses for a indebtedness bounds hike that would propulsion the adjacent deadline past the 2024 statesmanlike election, Republicans are pushing to rotation adjacent year's authorities spending backmost to its 2022 levels.

"It is precise frustrating if they privation to travel into the country and deliberation we're going to walk much wealth adjacent twelvemonth than we did this year. That's not right, and that's not going to happen," McCarthy said Friday evening.

Biden said helium is consenting to chopped spending, but not portion besides preserving Republican taxation cuts that mostly payment the wealthiest Americans.

The president has besides faulted Republicans for demanding that immense portions of national spending beryllium exempted from the projected fund cuts, including defence spending and perchance veterans wellness benefits. Once these categories are exempted, cuts to different programs would request to beryllium deeper successful bid to conscionable the baseline number.

"It's clip for Republicans to judge that determination is nary bipartisan woody to beryllium made solely, solely, connected their partisan terms," Biden said astatine a property league successful Japan connected Sunday.