Debt Ceiling Meeting Between Biden and Congressional Leaders Postponed Until Next Week

The meeting between President Biden, the top leaders of Congress and to discuss the debt ceiling has been postponed until next week.

Biden was scheduled to meet with House Speaker Kevin McCarthy and House Minority leader Hakeem Jeffreyries on Friday. Also expected were Senate Majority Chuck Schumer, Senate Minority Mitch McConnell, and Senate Minority Chuck Schumer.

If Congress does not address the debt ceiling, there is a risk that the U.S. Government could default on June 1.

A source at CNBC said that the meeting between President Joe Biden, top congressional leaders and Congressmen scheduled for Friday has been rescheduled to early next week.

Biden is scheduled to meet with House Speaker Kevin McCarthy (R-Calif. ), Senate Minority leader Mitch McConnell (R-Ky. ), Senate Majority leader Chuck Schumer (D-N.Y. ), and House Minority Hakeem Jeffries.

The Leaders

On Tuesday, the two met.

There are few signs of progress, but the staff is committed to meeting daily to find a solution.

McCarthy told reporters that he had not seen "any new movements" in the negotiating positions on the debt ceiling during the meeting.

McCarthy, McCarthy outside the White House, said: "Everyone in this meeting reiterated their positions."

Democrat leaders claim that all the leaders present, except McCarthy, agreed to remove any threat of default upon Biden's request. Biden told reporters that three of the leaders were reasonable throughout the discussion.

The meeting's tenor was measured and low-key, with three out of four participants. Biden stated that "occasionally, the speaker would make a statement which was perhaps a bit over the top."

Source familiar with the meeting

NBC News

The delay is a good thing.

Meetings are moving forward. The source stated that staff is still meeting and now was not the time to go back to the principals.

Lifting the

debt ceiling

In order to avoid default, it is essential that the government covers all spending obligations already approved by Congress and President. This does not constitute a new authorization of spending. House Republicans, however, have stated that they will not raise the spending limit if Biden or lawmakers refuse to agree on future cuts.

The White House stressed that, while it was open to discussing spending cuts with Republicans, it would not negotiate on the debt limit. The Biden administration said that the GOP had a constitutional obligation to increase the borrowing limit.

Treasury Department took extraordinary measures to pay the government's bill and is expecting to be able avoid a default for the first time at least until June. Treasury Secretary Janet Yellen

Warning Monday

Failure to raise the debt ceiling will cause "an economic catastrophe"

A default on sovereign debt could have a devastating effect on the economy.

roil markets

Around the world A default on

Treasury Bonds

Could send the U.S. into a tailspin. Standard & Poor’s warned of a possible default by Republicans in 2011.

Downgraded U.S. Credit Rating

First time in history, the rating was upgraded to AA+.

Moody's Analytics estimates that if the U.S. defaulted, its gross domestic product (GDP) would fall by 4%, and over 7 million workers could lose their jobs.

Recently projected

According to data, even a short default could lead to the loss 2 million jobs.

Kayla Tausche, a CNBC reporter, contributed to the report.