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May 10, 2023

No Progress on Debt Limit Talks After Biden-McCarthy Meeting as White House Weighs Unilateral Action
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President Biden and House Speaker Kevin Mc Carthy remain at a stalemate
over debt ceiling negotiations after meeting Tuesday for the first time
in three months. The two agreed to meet again as the U.S. inches closer
to a possible default as early as June 1. Mc Carthy has demanded
spending cuts before agreeing to raise the debt limit, which Biden has
refused to consider, as Democrats slam Republicans for economic
hostage-taking. Biden spoke after Tuesday's meeting.

President Joe Biden: "Everyone in the meeting understood the risk of
default. Our economy would fall into a significant recession. It would
devastate retirement accounts, increase borrowing cost. According to
Moody's, nearly 8 million Americans would lose their jobs. And our
international reputation would be damaged in the extreme."

Calls are mounting for Biden to invoke the 14th Amendment, which would
allow him to continue issuing debt, bypassing Congress. Biden has said
he has not taken that option off the table.


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