McCarthy Ahead of Biden Meeting: "10 Days Left. Decision Must Be Made"

Kevin McCarthy, Speaker of the U.S. House of Representatives from the Republican Party, stated on the 22nd (local time), just hours before a meeting with President Joe Biden regarding the debt ceiling increase, "Time is of the essence. There are 10 days left," and emphasized, "A decision must be made." Amid warnings that a default could occur as early as June 1, he once again pressured his negotiation partner, President Biden, saying that the worst-case scenario must be prevented.

[Image source=EPA Yonhap News]

According to local media including CNN, President Biden is scheduled to meet with Speaker McCarthy at 5:30 p.m. Eastern Time on the same day. Previously, negotiations had been temporarily halted due to a deadlock but resumed at the working level on the evening of the previous day after President Biden returned from an overseas trip. As a result, attention is focused on whether a breakthrough in the debt negotiations will be achieved during the meeting between the two that evening.

Speaker McCarthy said, "I think we can make a deal tonight. Maybe tomorrow, but to pass the bill in the House and move it to the Senate by the June 1 deadline, something must be done this week," repeatedly emphasizing the tight deadline. He added, "It should have been finished by the weekend," but expressed optimism about the negotiation outcome, saying, "It has become more difficult, but I still believe we can get everything done."

While drawing a line that nothing has been agreed upon yet, Speaker McCarthy said that if no agreement is reached, the House will work through Memorial Day. He also added that it is still possible to prevent the worst-case scenario of a default on June 1.

The Republican Party, which holds the majority in the House, opposes raising the debt ceiling unless there are large-scale government spending cuts as a precondition, while the White House and the Democratic Party have demanded an unconditional increase. Currently, President Biden is advocating for tax reform through increased taxes on the wealthy.

In response, Speaker McCarthy said that the Republican priorities have been clear from the beginning. He explained, "We will not raise taxes. We will spend less than what was spent this year." He also expressed his belief that the majority of Republicans will support the negotiated outcome. Furthermore, he mentioned China's blatant hegemonic ambitions and added that defense budget cuts are not on the table.

Currently, the market is concerned about the uncertainty and repercussions leading up to the deadline, although it does not expect the worst-case scenario of a default to materialize. On the previous day, U.S. Treasury Secretary Janet Yellen warned again that if the debt ceiling is not raised, the default deadline could be as early as June 1.

Some analysts suggest that the Biden administration may ultimately take emergency measures to raise the debt ceiling without congressional approval based on the 14th Amendment. The 14th Amendment stipulates that "the validity of the public debt of the United States... shall not be questioned." The Wall Street Journal (WSJ), regarded as a conservative publication, argued in an editorial that "President Biden must fulfill the federal government's debt obligations, and failure to do so would be unconstitutional."

This content was produced with the assistance of AI translation services.