WASHINGTON \u2014 House Speaker Kevin McCarthy and President Joe Biden have agreed to meet Wednesday to discuss raising the U.S. debt ceiling, reducing government spending and avoiding a sovereign default.<\/p>\n
\u201cWe\u2019re going to meet this Wednesday,\u201d McCarthy said on CBS\u2019 \u201cFace the Nation\u201d on Sunday. \u201cI want to find a reasonable and a responsible way that we can lift the debt ceiling\u201d and \u201ctake control of this runaway spending.\u201d<\/p>\n
The planned meeting, which was confirmed by a White House official, will pit McCarthy\u2019s call for spending cuts as a condition of any deal against Biden\u2019s refusal to treat the federal debt ceiling as a bargaining chip.<\/p>\n
In a statement on Jan. 20 looking ahead to the talks, White House press secretary Karine Jean-Pierre emphasized Biden\u2019s stance that \u201cthe debt ceiling is not a negotiation\u201d but \u201can obligation of this country and its leaders to avoid economic chaos.\u201d Biden expects Congress to \u201cdo their duty\u201d and raise the ceiling, she said.<\/p>\n
McCarthy said that while reductions in Social Security and Medicare should be \u201coff the table,\u201d all discretionary spending, including the U.S. defense budget, should be reviewed for waste. The California Republican declined to speculate on the chances of a short-term extension of the federal debt ceiling, a stopgap that House Republican leaders are considering proposing.<\/p>\n
\u201cNow I know his staff tries to say something different, but I think the president is going to be willing to make an agreement together,\u201d McCarthy said. \u201cI\u2019m hopeful.\u201d<\/p>\n
\u201cWe\u2019re not going to default,\u201d he said.<\/p>\n
After a hard-fought battle to win the House speakership, McCarthy is under pressure from his caucus to win spending cuts. And a group of two dozen Republican senators warned Biden last week they won\u2019t support a debt ceiling increase without \u201cstructural\u201d changes to U.S. spending.<\/p>\n
The U.S. can\u2019t \u201ccontinue just to spend more money and leverage the debt and the future of America,\u201d McCarthy said Sunday. \u201cWe\u2019ve got to get to a balanced budget.\u201d<\/p>\n
___<\/span><\/p>\n \u00a92023 Bloomberg L.P. Visit bloomberg.com<\/a>. Distributed by Tribune Content Agency, LLC.<\/span><\/p>\n