House Speaker McCarthy Says 'Further Conversations' On Debt Ceiling Necessary, Opening Up More Talks This Week

"Negotiators are still far apart" but a deal by the end of the week is "feasible," House Speaker Kevin McCarthy (R-CA) said following a debt ceiling summit with President Joe Biden and other key lawmakers on Tuesday.

"We've set the stage for further conversations in debt talks," the Republican leader added. 

Senate Majority Leader Chuck Schumer (D-NY) said the debt discussion was "good and productive," noting that all sides agreed that a default would be a horrible idea. Schumer added that "we are closer to a deal," highlighting that bipartisan negotiations will go ahead, with a few added players. 

Senate Republican Leader Mitch McConnell said: "We are confident that we will not default."

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Treasury Secretary Janet Yellen has repeatedly underlined June 1 as a possible deadline when the U.S. government might be unable to pay its obligations without increasing the debt limit.

Meanwhile, an administration official informed CNN that Biden is canceling his forthcoming trips to Papua New Guinea and Australia due to the debt limit discussions in Washington.

Market Reactions: Stocks Tick Down

Stocks fell to session lows after the statements, as investors expected a solution to the debt ceiling to be found on Tuesday.

The SPDR S&P 500 ETF Trust SPY fell to $410 in the minutes after the headlines before attempting to regain some ground. Yields on one-month Treasury bills held steady at 5.55%. The SPY finished Wednesday 0.67% lower at $410.25. 

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