Biden Optimistic About A Debt Limit Deal, But Mccarthy Says The White House Isn’t Being Serious

  • President Joe Biden sounds optimistic about the odds of reaching a deal with Republicans to raise or suspend the debt limit in time to avoid economic fallout from even a potential U.S. debt default. “I really think there’s a desire on their part, as well as ours, to reach an agreement, and I think we’ll be able to do it,” Biden told reporters Sunday in Delaware. As to his state of mind, he said, “I remain optimistic because I’m a congenital optimist.”
  • Biden also characterized the talks underway between White House liaisons and congressional aides as “a negotiation,” a notable choice of words after months of insisting he would not “negotiate” over the debt limit. The president and the top four congressional leaders plan to meet again about the debt ceiling Tuesday.
  • Biden’s remarks followed the postponement of a White House meeting, originally set for Friday. The White House said the three-day delay should be viewed as a sign of progress in the talks. “The meetings have been productive over the past few days and leaders wanted to continue before they regrouped,” White House press secretary Karine Jean-Pierre said Friday.
  • Not everyone involved in the talks has such a sunny outlook, however, as House Speaker Kevin McCarthy told NBC News on Monday that he thinks they are still far apart and that it doesn’t seem yet that they want a deal. “It seems like they want to look like they’re in a meeting,” said McCarthy. “They’re not talking about anything serious.”
  • Democrats have spent months blasting House Republicans’ proposal, which demands sweeping cuts to federal spending in exchange for agreeing to pass a debt limit hike. Just last Thursday, Biden accused the House GOP of “holding our economy hostage.” Against this backdrop of months of bitter partisan attacks, Biden’s sudden shift in tone Sunday was striking.
  • Investors are watching how the negotiations unfold. Stocks declined Monday morning as the market chewed over the comments from Biden and McCarthy.

(Source: CNBC)