US President Joe Biden welcomed the Speaker of the House of Representatives to the Oval Office on Monday to break a stalemate. He has been negotiating with Kevin McCarthy over a deal to avoid defaulting on the national debt.
Democrats and Republicans have been arguing over the debt ceiling, the limit Congress imposes on the amount the government can owe. Biden has proposed spending cuts of one trillion dollars. "We still have some disagreements," he said. "But I think we may be able to get where we have to go."
McCarthy said the government has to spend less next year than this year. "I think we both agree that we need to change the trajectory, that our debt is too large," he said. "I think, at the end of the day, we could find common ground."
Treasury Secretary Janet Yellen has warned the nation could run out of cash as early as June 1. She sent a letter to Congressional leaders, warning failure to reach an agreement would "cause severe hardship to American families."