Biden, McCarthy discuss debt limit as financial crisis looms

President Joe Biden and Speaker of the House Kevin McCarthy (R-CA) spend an hour in the oval office attempting to thrash out a deal on resolving the debt ceiling.  Both men agreed that they have different visions on the best way to solve the crisis.

“I don’t want to put any words in his mouth,” McCarthy told reporters while leaving the White House following the meeting he requested, The Hill’s Brett Samuels reported.

McCarthy did speak positively following the meeting but did not explicitly rule out a default.

“I thought it was a very good discussion and we walked out saying we would continue the discussion,” McCarthy said. “I think there is an opportunity here to come to an agreement on both sides. … My role right now is to make sure we have a sensible, responsible ability to raise the debt ceiling but not continue this runaway spending.”

McCarthy also took to Twitter where he said that the government’s mentality towards expenditure had to change.

“Our debt is too high. We have waste in our government. The problem is getting worse, not better. Republicans and Democrats must work together for a responsible debt limit that puts us on a path to a balanced budget.”

Biden told McCarthy that he would not negotiate on the limit but remains open to a “separate discussion with congressional leaders about how to reduce the deficit and control the national debt while continuing to grow the economy,” according to The White House’s summary of the meeting.

Federal Reserve Chairman Jerome Powell has placed the onus on Congress to increase the borrowing limit. “There is only one way forward here and that is for Congress to raise the debt ceiling,” he said Wednesday during a press conference to announce another interest rate hike. “Any deviations from that path would be highly risky and no one should assume that the Fed can protect the economy.”