Debt: No Agreement Yet, But Talks Continue

A deal is one step closer following talks between President Biden and House Speaker McCarthy which have just finished. Comments from McCarthy indicate that the meeting was “productive” and that the tone of discussions had improved. Nothing has been agreed but both sides want a deal, and everything is being talked about. McCarthy says he’ll speak to Biden every day until there is a deal and other negotiators are continuing to talk through the night.

• The Republicans won’t pass an increase in the debt-ceiling without conditions being met and a short-term increase doesn’t benefit anyone. But McCarthy also said that American’s don’t need to prepare for a default.
• Biden said before the meeting that he wants tax loopholes looked at but McCarthy made clear that the Republicans are not interested in looking at revenues and won’t raise taxes.
• The Republicans want significant spending cuts to agree to an increase in the debt ceiling but today McCarthy stated that those cuts are not to impact defence. House of Reps Democratic leader Jeffries said that they’re prepared to discuss freezing spending at current levels.