Pair to meet in person after ‘productive’ phone call on Sunday but Democrats warn Republican demands are not acceptable
Joe Biden was due to meet Kevin McCarthy on Monday as the White House sought to stave off a US debt default, a potentially catastrophic event the US treasury secretary, Janet Yellen, has said will happen on or around 1 June if no deal to raise the $31.4tn debt ceiling is reached.
If the debt limit is not raised, the US government will default on its bills: a historic first with probably catastrophic consequences. Federal workers would be furloughed, global stock markets would be likely to crash and the US economy would probably drop into recession.
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