Debt-limit talks resumed in Washington on Friday hours after Republican negotiators stormed out in frustration that that their demands for spending cuts weren’t being heard by White House officials.
House Speaker Kevin McCarthy said that the discussions were restarting after a pause of several hours prompted by the GOP walkout, and White House negotiators hand-picked by President Joe Biden returned to the Capitol shortly after.
“It’s true that we took a pause because of the frustration that this White House will not acknowledge that they’re spending too much,” McCarthy said in an interview with Fox Business. “We’ll be back in the room tonight.”
Stocks fell Friday amid concern that US lawmakers and the Biden administration are struggling to reach a deal to prevent a default.
Treasury Secretary Janet Yellen has indicated that a default could become a risk as soon as June 1.
Shalanda Young, director of the White House Office of Management and Budget, and Steve Ricchetti, a senior Biden adviser, had no comment when they arrived back at the Capitol. They entered the negotiating room where Republican Representatives Patrick McHenry, Garret Graves and McCarthy Chief of Staff Dan Meyer awaited, and the door slammed shut.
McCarthy said an increase in spending sought by the White House is “not going to happen” and said it’s been frustrating the White House continues to push for more spending in the talks.
McCarthy’s remarks come after a turbulent few days for negotiations. One day after McCarthy said he expected a deal on the House floor next week, GOP negotiators walked out of talks with White House officials.
There was not a dramatic flare-up in the room before negotiators left, according to one person familiar with the negotiations. Another person familiar with the talks said it wasn’t a specific issue but ranged broadly across GOP budget-cutting demands.
Trump Sets Impossible Bar for McCarthy in Debt-Limit Talks
--With assistance from Jarrell Dillard.
(Updates throughout)
Author: Steven T. Dennis and Billy House