(NewsNation) — President Joe Biden and Republicans in Congress remain in a standoff over the national debt limit as Treasury Secretary Janet Yellen warns the U.S. could default as soon as June 1.
In a letter to House and Senate leaders, Yellen urged lawmakers to quickly reach an agreement in order to avert a possible global financial crisis.
President Joe Biden plans to meet with the top four Congressional leaders next week; House Speaker Kevin McCarthy, Senate Majority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries and Senate Minority Leader Mitch McConnell, for face-to-face negotiations.
“We do not have the luxury of waiting until June 1 to come together, pass a clean bill to avoid a default and prevent catastrophic consequences for our economy and millions of American families. Republicans, they say, cannot allow right wing extremism to hold our nation hostage,” Schumer and Jeffries said in a joint statement.
The White House is now suggesting Biden will insist Republicans lift the debt ceiling without conditions.
“America is not a deadbeat nation, we have never, ever failed to meet the debt. And as a result, one of the most respected nations of the world, we pay our bills. And we should do so without reckless hostage taking from some of the MAGA Republicans in Congress,” Biden said Monday.
Next Wednesday’s meeting is an acknowledgement that Biden and the top Republican in Washington, Schumer, are unlikely to resolve the matter themselves. So, they’re bringing in the others to get the ball rolling.
Republicans are arguing that if the U.S. wants to borrow more money, the government needs to cut back on some of its spending. House Speaker McCarthy suggested spending be rolled back to 2022 levels.
“We simply go back to the spending levels we were at four months ago. So four months ago, were there people being laid off? Were there problems in the veterans or others? No, there were not,” McCarthy told NewsNation.
The House passed a bill last week that rolls back on some of Biden’s big policy achievements and priorities, but is essentially a non-starter among Democrats.