Biden was expected to talk with House Speaker Kevin McCarthy (R., Calif.) shortly after his plane took off from Asia for a one-on-one discussion with the Republican leader. Leaders in Washington are rushing to come up with a deal to lift the country’s borrowing limit. Now, negotiations have hit an impasse, with frustrations boiling over on both sides as the deadline for avoiding a first-ever default approaches. Economists say that failure to lift the debt ceiling, and a subsequent default, would tip the economy into a recession. At the core of the stalemate are fundamental disagreements about spending levels, according to lawmakers, aides and White House officials.

Source: Wall Street Journal May 22, 2023 03:05 UTC