House Speaker McCarthy Urges President Biden to Act Quickly to Avoid a Catastrophic Default on U.S. Debt Obligations

The Congressional Budget Office (CBO) has warned that the United States could default on its debt as early as July, prompting House Speaker Kevin McCarthy to call on President Biden to hold another round of talks over a deal to raise the debt ceiling.

In a letter to Mr. Biden, McCarthy said he is prepared to sit down with the president to discuss ways to limit government spending and reduce the national debt to grow the economy, and warned that the U.S. is fast-approaching its deadline to avoid a catastrophic default on its debt obligations.

McCarthy proclaimed he has “no interest in brinksmanship,” and urged the president to act quickly to avoid a financial crisis and recession. “Mr. President, simply put: you are on the clock,” the Republican leader wrote.

After months of mystery over what spending cuts Republicans would demand from President Joe Biden in return for raising the federal debt limit, McCarthy suggested Republicans had begun to coalesce around some ideas. He did not provide specifics, but said he was willing to discuss them with the president.

The CBO’s warning has put pressure on both parties to reach a deal before the deadline. The White House has said it is open to negotiations, but has not yet responded to McCarthy’s letter. It remains to be seen if the two sides can come to an agreement before the July deadline.