President Joe Biden said he was ‘optimistic’ of a deal that could avert a U.S. default as he left Washington for Camp David hoping for a signal of progress within hours.
‘I hope we’ll have some clear evidence tonight before the clock strikes 12 that we have a deal,’ Biden told reporters as he left town at the start of the Memorial Day Weekend.
He spoke hours after Treasury Secretary Janet Yellen said the nation would likely hit the ‘X’ default deadline June 5 unless Congress is able to act.
Biden said negotiators were ‘very close’ but declared himself ‘optimistic.’
Earlier, Speaker Kevin McCarthy said he believed ‘progress’ was made in debt talks overnight, though the two sides still remain hung up on the biggest part: spending levels.
President Joe Biden walks out to talks with reporters on the South Lawn of the White House in Washington, Friday, May 26, 2023, as he heads to Camp David for the weekend. (AP Photo/Susan Walsh)
‘I thought we made progress last night. We got to make more progress now,’ McCarthy told reporters on his way into the Capitol.
He said he’d met with his top negotiating deputy, Rep. Garret Graves, for a morning bike ride.
‘It’s about spending. The Democrats never want to stop,’ McCarthy said.
Speaker Kevin McCarthy said he believed ‘progress’ was made in debt talks overnight, though the two sides still remain hung up on the biggest part: spending levels
Graves and fellow top negotiator Rep. Patrick McHenry were seen entering the speaker’s office again mid-morning on Friday.
The two sides still have not come to an agreement on a top line number for increasing the nation’s borrowing limit.
McHenry told reporters on his way into the speaker’s office that there were no in-person meetings scheduled between House GOP negotiators and White House negotiators Steve Ricchetti and Shalanda Young for Friday.
President Biden is headed to Camp David Friday before he plans to spend the weekend at his home in Delaware. The White House insists he can negotiate from anywhere via phone.
‘We are here night after night after night. The pressure is more, the consequences are greater. We recognize that. The White House should recognize that,’ McHenry, N.C., said.
Bloomberg reports the two sides are closing in on a deal that would increase the debt limit for two years and would cap spending for the same amount of time – and the deal would claw back $10billion from the $80billion increase in IRS funding Democrats passed last Congress.
But a source familiar with the talks told DailyMail.com the two sides have not agreed to a top line and have not agreed on whether to extend borrowing for one or two years.
Republicans want only one year, Democrats want to push the extension through the next election.
The two sides are also going into Friday hung up on defense spending.
Reporters huddle around the speaker desperate for updates on the impending deal that could stave off a catastrophic default
Republicans wanted a large increase to the defense budget, even as they want to cut spending overall, while Democrats wanted spending cuts
Republicans wanted a large increase to the defense budget, even as they want to cut spending overall, while Democrats wanted spending cuts.
The two sides could come to agreement with a small increase – in line with President Biden’s $886.3billion budget request.
In 2011, the country was in a similar crisis under former President Barack Obama who also faced a Republican House opposed to raising the ceiling.
While the ceiling was raised, the threat of default was enough to plunge the U.S. financial markets into turmoil and the country’s rating downgraded from AAA to AA+ as a result.
Source: | This article originally belongs to Dailymail.co.uk