Washington's debt ceiling stalemate and how it may end

Washington's debt ceiling stalemate and how it may end

After a weekend of on-and-off discussions over extending the debt limit, President Joe Biden and House Speaker Kevin McCarthy will meet Monday, days before the government might approach a "hard deadline" and run out of money.

After a debt ceiling phone discussion with President Joe Biden, House Speaker Kevin McCarthy, R-Calif., leaves his office to meet with the press on Capitol Hill in Washington on Sunday, May 21, 2023. 

House Speaker Garret Graves, R-La., follows McCarthy. On Sunday, May 21, 2023, on Capitol Hill in Washington, Kevin McCarthy, R-Calif., leaves his office to meet with reporters following a debt ceiling phone discussion with President Joe Biden.

Garret Graves, R-La., follows McCarthy. Before June 1, when Treasury Secretary Janet Yellen has warned of a default, the two sides are trying to achieve a budget deal.

McCarthy and Republicans want expenditure cutbacks for debt ceiling increases. After months of stalling, Biden has agreed to negotiate but says GOP members must drop their "extreme positions."

Negotiators met again Sunday evening and looked to be close to a 2024 budget year ceiling that might end the deadlock.

McCarthy seemed upbeat after chatting with Biden by phone when the president returned from Asia. He cautioned "there's no agreement on anything."

Congress routinely raises the debt limit to enable the Treasury Department to borrow money to pay the nation's debts.

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