WASHINGTON — White Home negotiators and representatives of Home Speaker Kevin McCarthy resumed debt ceiling talks Monday morning, as President Joe Biden ready to fulfill with McCarthy nose to nose with solely 10 days to go till the U.S. dangers default.

The talks got here after a dramatic weekend throughout which negotiations broke down Friday over an obvious deadlock on authorities spending ranges however resumed a number of hours later.

Biden and McCarthy spoke by cellphone Sunday night, a dialog they described as “productive” and which may set the stage for anticipated progress towards a deal within the first a part of this week. Biden and McCarthy are set to fulfill at 5:30 p.m. ET Monday within the Oval Workplace.

The White Home group, composed of presidential counselor Steve Ricchetti, Workplace of Administration and Funds Director Shalanda Younger and legislative affairs director Louisa Terrell, declined to talk with reporters as they walked into the Capitol for talks with McCarthy’s facet Monday.

Treasury Secretary Janet Yellen reaffirmed on Sunday that June 1 is the federal government’s “exhausting deadline” to lift the debt restrict or face a possible first ever nationwide debt default.

“We count on to be unable to pay all of our payments in early June, and probably as quickly as June 1,” Yellen advised NBC’s “Meet the Press.”

“My evaluation is that the percentages of reaching June 15 whereas with the ability to pay all of our payments is sort of low,” she stated, with the caveat that there would all the time be uncertainty about actual income and funds.

Each Biden and McCarthy have acknowledged that one of many major sticking factors within the talks stays the query of spending caps, a key GOP demand however a crimson line to date for the White Home. Elevating the debt restrict wouldn’t authorize new spending, however Republicans have insisted on sweeping cuts to authorities outlays as a part of a deal to hike the borrowing restrict.

“The underlying concern right here is that Democrats, since they took the bulk, have been hooked on spending. And that is going to cease. We’ll spend lower than we spent final yr,” McCarthy stated to reporters Monday morning within the Capitol.

Biden is hoping to succeed in a debt restrict deal that will push the following deadline out previous the 2024 presidential election. However Home Republicans, who to date have endorsed solely a one-year hike, say that if Biden needs extra time, then he might want to comply with much more cuts.

Over the weekend, the president additionally faulted Republicans for demanding that massive chunks of federal discretionary spending be exempted from their proposed topline price range cuts, together with protection and doubtlessly veterans well being advantages.

If these classes had been really to be exempted, Biden defined, then cuts to all the opposite discretionary spending would have to be a lot deeper with a purpose to make up the distinction.

Throughout-the-board cuts like these “make completely no sense in any respect,” Biden stated Sunday in Japan, the place he was attending the Group of Seven Summit. “It is time for Republicans to simply accept that there isn’t any bipartisan deal to be made solely, solely, on their partisan phrases.”