US default risk looms over Biden’s G-7 visit.

Biden Seeks Call with McCarthy After G-7 Summit

President Joe Biden has requested a call with House Speaker Kevin McCarthy on Sunday morning, U.S. time, after concluding his G-7 meetings in Japan. The call comes after negotiations over the debt ceiling stalled, with the White House and Republicans failing to reach an agreement on Friday night. Meanwhile, McCarthy accused the White House of backtracking on debt-limit talks, claiming that no progress would be made until Biden returns from his G-7 trip. The White House responded by stating that the president is seeking to speak with McCarthy on Sunday morning from Japan.

Heated Exchange Over Debt Ceiling Negotiations

The White House and Republicans have engaged in a heated exchange over the debt ceiling negotiations. McCarthy accused Biden of refusing to cooperate on spending cuts, claiming that the president would rather default on the debt than risk upsetting the radical socialists who are calling the shots for Democrats right now. In response, the White House defended the president’s deficit reduction proposals, including spending limits, cuts to Big Pharma profits, and closing tax loopholes for the oil industry.

White House Accuses Republicans of Taking the Economy Hostage

The White House issued a memo accusing Republicans of “recycling a barely watered down version of their extreme budget proposal.” The memo also claimed that Republicans are taking the economy hostage and pushing the country to the brink of default, which could cost millions of jobs and tip the country into recession after two years of steady job and wage growth. The White House called for a reasonable bipartisan agreement to be reached.

Key Takeaways:

• President Biden has requested a call with House Speaker Kevin McCarthy on Sunday morning, U.S. time, after concluding his G-7 meetings in Japan.
• The White House and Republicans have failed to reach an agreement on the debt ceiling negotiations.
• McCarthy accused Biden of refusing to cooperate on spending cuts, while the White House defended the president’s deficit reduction proposals.
• The White House accused Republicans of taking the economy hostage and pushing the country to the brink of default.

It remains to be seen whether a reasonable bipartisan agreement can be reached before the country defaults on its debt. The stakes are high, and the outcome of these negotiations could have far-reaching consequences for the U.S. economy and the global financial system.

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