Biden-McCarthy debt limit meeting fails.

Biden-McCarthy debt limit meeting fails.

President Joe Biden and House Speaker Kevin McCarthy failed to reach a deal Monday on how to increase the $31.4 trillion debt limit, 10 days before a potential default that could destroy the U.S. economy.

McCarthy encourages the White House to accept "extreme" government budget cutbacks, while Biden wants more levies that Republicans oppose.

After Monday night's discussion, both parties underscored the need to avoid default with a bipartisan solution and said they'd be talking frequently.

A source said White House officials were returning to Capitol Hill on Monday night to restart discussions.

"We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement," Biden said after the meeting, which he termed "productive."

After nearly an hour of meetings with Biden, McCarthy told reporters that negotiators are "going to get together, work through the night" to find common ground.

McCarthy added, "We can still get there." He said he is focused on lowering spending in the 2024 federal budget and would not entertain Biden's offer to decrease the deficit by boosting taxes on the wealthiest and removing oil and pharmaceutical industry tax loopholes.

Democrats and Republicans have until June 1 to raise the government's self-borrowing ceiling or risk a recession.

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