Biden, McCarthy Meeting On Debt Ceiling Put Off Until Early Next Week, Spending Cuts Reportedly Under Discussion

The much-awaited meeting between President Joe Biden and House Speaker Kevin McCarthy regarding the debt ceiling crisis that was scheduled to take place on Friday has been reportedly postponed with the leaders having agreed to meet early next week.

Aides from both sides have begun discussing ways to limit federal spending, reported Reuters citing people familiar with discussions. “Staff will continue working and all the principals agreed to meet early next week,” a White House spokesperson said, according to the report.

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McCarthy told reporters the delay was not any indication of trouble in the talks but that he believed the staff negotiators needed to continue to talk before the leaders met again.

Contours: Meanwhile, White House officials acknowledged they must accept some spending cuts or strict limits on future spending if a deal is to be done while insisting they must preserve Biden’s signature climate legislation that passed along party lines last year, the report said citing sources.

The two sides are also discussing how long to push out the next potential debt ceiling showdown, the report added, citing sources. President Biden and Democrats would favor a two-year window, pushing any legislative action beyond the 2024 presidential election, the report said adding that they may have to agree to larger spending cuts or stricter limits to get more time.

On Thursday, Treasury Secretary Janet Yellen, while speaking at the meeting of Group of Seven finance officials, reportedly said failure to avert a looming default would spark a global downturn, risk undermining U.S. global economic leadership and raise questions about its ability to defend national security interests.

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