WASHINGTON - President Joe Biden and House Speaker Kevin McCarthy are set to meet at the White House at a pivotal moment as Washington works to strike a budget compromise and raise the nation's borrowing limit in time to avert a devastating federal default.The meeting Monday afternoon between the Democratic president and the new Republican speaker will be critical as they race to prevent a looming debt crisis.
After a weekend of start-stop talks, both men appeared upbeat as they face a deadline, as soon as June 1, when the government could run out of cash to pay its bills.Biden and McCarthy spoke by phone Sunday while the president was returning home on Air Force One after the Group of Seven summit in Japan. "It went well, we’ll talk tomorrow," Biden said in response to a shouted question upon his return late Sunday.The call revived talks and negotiators met for 2 1/2 hours at the Capitol late Sunday evening, saying little as they left.
Financial markets turned down last week after talks stalled.McCarthy, R-Calif., told reporters earlier Sunday that the call with Biden was "productive" and that the on-again, off-again negotiations between his staff and White House representatives are focused on spending cuts.Biden told a press conference before departing from Japan: "I think that we can reach an agreement."FILE - US President Joe Biden (R) meets with US Speaker of the House Kevin McCarthy in the Oval Office of the White House in Washington, DC, on May 9, 2023. (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images) The contours of an agreement appear within reach, and the negotiations have narrowed on a 2024 budget year cap that would be key to resolving the standoff.