Biden discusses ‘debt limit’ with House Speaker McCarthy

US President Joe Biden came to a meeting with the Speaker of the House of Representatives McCarthy at the White House and discussed the “debt limit” issue, but the meeting did not come to any conclusion about increasing the debt limit.

McCarthy spoke in a press release at the White House following his first meeting with Biden as Speaker of the House of Representatives. Stating that their meeting with Biden was appropriate, McCarthy said that they said they would continue to discuss the debt limit.

McCarthy underlined that they will continue negotiations to make America stronger, more faithful and stable.

Defending the view that “debt” is the biggest threat to the USA, McCarthy noted that the country’s debt is 120 percent more than its gross domestic product.

Pointing out that there is a problem with “spendings”, McCarthy underlined that as the Speaker of the House, he is aware of his responsibility to act “reasonably and responsibly” in raising the debt limit, but that an increase in unnecessary spending should also be avoided.

House Speaker McCarthy answered “No” to the question of whether “confidential documents” were on the agenda during the meeting.

Call to Congress from the White House

In a statement from the White House on the subject, it was reported that Biden and McCarthy had a “candid and open” meeting.

In the statement, it was noted that Biden conveyed that it was their common duty to not allow an “unprecedented and economically disastrous default” with Congress.

In the statement, which stated that the expectation of the American people is in this direction, it was emphasized that increasing the debt limit is not open to discussion and should not be tied to any condition.

In the statement, it was also stated that Biden would welcome a different meeting with Congress leaders on how to reduce the budget deficit and control the national debt.

debt limit crisis

In the US, the federal government has reached the $31.4 trillion debt limit that could lead to default.

The debt limit, or debt ceiling, means “the upper limit of the amount of money the U.S. government can borrow to pay off its debts.”

Republicans, who have just won a majority in the House of Representatives, are in favor of valuable spending cuts in debt-limit negotiations. Democrats, on the other hand, insist on increasing the debt limit, while rejecting Republican offers to cut reasonable spending.

There is concern that the debt limit issue, which has become a stalemate between Democrats and Republicans, has shaken the markets in a few months. As recession prospects strengthen in the US, the two-party showdown over the debt limit is more risky than ever.