Joe Biden says debt limit talks ‘making progress’ as deadline looms

Joe Biden claimed White House officials were “making progress” in budget talks with Republicans to prevent a damaging debt default, even as the government ran out of money to pay all its bills. Time was running out to implement any deal before exiting. next week.

The US president struck a relatively upbeat tone Thursday afternoon at an event in the White House Rose Garden, giving an update on talks to tackle the fiscal crisis gripping Washington.

“Speaker (Kevin) McCarthy and I have had many productive conversations and our staffers continue to meet as we talk about the facts — and they’re making progress,” Biden said. “I am confident that we will come to an agreement that will allow us to move forward and protect the hardworking Americans across this country.”

His comments came a day after credit rating agency Fitch warned it could downgrade America’s triple A rating due to “hardening” on the US debt ceiling, amid growing concern that absenteeism could escalate financial stress in the coming days. Is. of an agreement.

Both Biden and McCarthy, the Republican House Speaker, are facing calls from rank-and-file members of their respective parties not to make concessions in the final phase of the talks.

McCarthy also spoke by phone on Thursday with former President Donald Trump, who has asked Republicans to accept default if they do not agree to Biden’s spending cuts. He then gathered with top Republican lawmakers in his office. “Every hour counts,” McCarthy told ABC News.

House members are going home for the Memorial Day long weekend, but have been told they may need to return to Washington on short notice.

The US Treasury has warned that the world’s largest economy could run out of money to pay all its bills as early as June 1, risking its first default on government debt.

Congressional allies say the path is getting increasingly narrow for Biden to get the deal through both chambers of the legislature and to sign it in time. “The sand is almost out of the hourglass for a potential debt ceiling deal,” Chris Kruger, an analyst with TD Cowen’s Washington Research Group, wrote in a note Thursday.

He said if a deal is reached by Friday, the House could pass a bill as soon as Tuesday, which would then fast-track it through the Senate the next day.

“This timetable is certainly optimistic and assumes a high level of execution skill as everything falls into place,” he added.

Business groups in Washington are urging the two sides to strike a deal as quickly as possible to avoid a potentially devastating economic and financial blow.

“If there isn’t a deal in the next 24 hours, it starts to get really hairy,” said Neil Bradley, chief policy officer for the US Chamber of Commerce. “We’re in that window where you need things to go well.”

Speaking at an event organized by the Investment Company Institute earlier in the day, Deputy Treasury Secretary, Wally Adeyemo, expressed regret that the impasse has gone to the wire.

“I think the goal of everyone is to make sure that we raise the debt ceiling. But the most important thing, as you all know in this room (and) the American people know, is that we should not be here , “They said. “It’s a manufactured crisis.”