WASHINGTON, March 19 (Reuters) – U.S. Home Speaker Kevin McCarthy mentioned on Sunday that he confronted President Joe Biden a few lack of negotiations on the $31.4 trillion U.S. debt ceiling final week and instructed the president he’s placing the financial system in danger.
McCarthy, the highest Republican within the Home of Representatives, first met with Biden on Feb. 1. However a standoff has since ensued between Republicans who wish to use the debt ceiling to precise spending cuts from the White Home, and Biden, who desires the debt ceiling raised with out strings hooked up.
“I simply noticed the president once more on St. Patrick’s Day, Friday,” McCarthy instructed reporters in Orlando, Florida, the place Home Republicans are holding a retreat this week.
“I sat down with him and mentioned, you mentioned we would meet once more. Every single day that passes, you set the financial system in jeopardy,” he mentioned.
White Home officers weren’t instantly out there for remark.
Biden has known as on McCarthy and Home Republicans to provide a fiscal 2024 funds earlier than negotiating on spending. The president launched his personal $6.8 trillion spending plan almost two weeks in the past, which Republicans have rejected outright.
Home Republicans are actually engaged on their very own funds, which is predicted to name for deep cuts in discretionary nondefense spending. The hardline Home Freedom Caucus has launched its personal spending plan, which requires resetting nondefense spending to pre-COVID-19 pandemic ranges and eliminating a number of Biden applications.
“I mentioned: look, we’re not going to boost taxes and we’re not going to go a clear debt ceiling. However every part else is up for negotiation,” McCarthy mentioned.
The California Republican mentioned he urged Biden to contemplate work necessities for social applications, border safety and federal allowing reform for vitality, in addition to diminished spending.
Biden’s proposal and the hardline Republican response are early salvos in a funds negotiation that Republicans hope will result in spending cuts.
However the political standoff has raised considerations a few doable first-ever default someday this summer time, when the Treasury is predicted to exhaust its skill to maintain authorities borrowing beneath the congressionally enacted ceiling.
Reporting by David Morgan; further reporting by Nandita Bose; modifying by Don Durfee and Chris Reese
: .
