President Joe Biden on Tuesday said that “default is not an option” after what he called a “productive” meeting with top politicians to negotiate raising the debt ceiling, as the US lurches towards a possible default and financial calamity.
“I made clear during our meeting that default is not an option. I repeated that time and again — America is not a deadbeat nation,” he said.
Republican House Speaker Kevin McCarthy, Democratic House minority leader Hakeem Jeffries, and Chuck Schumer and Mitch McConnell, the Democratic and Republican leaders in the Senate, were present at the high-level meeting.
“Everyone in the meeting understood the risk of default,” Mr Biden said.
The President announced that he and the leaders would meet again on Friday. Teams between the White House and Congress will have daily conversations, he added.
Mr Biden and Mr McCarthy remain at odds over raising the debt ceiling.
The White House wants to raise the limit without conditions but Mr McCarthy's caucus has insisted it will not pass a deal that does not address what it calls excessive spending.
“I didn't see any new movement,” Mr McCarthy said in remarks after the meeting.
Mr McConnell said: “The United States is not going to default. It never has and it never will.”
A new report from the Bipartisan Policy Centre released on Tuesday added further urgency as it moved up its projected “X date” — the day the US will be unable to pay its bills — to as soon as early June.
“If a solution is not reached before June, policymakers may be playing daily Russian roulette with the full faith and credit of the United States, risking financial disaster for their constituents and the country,” said Shai Akabas, director of economic policy at the centre.
Even last-minute deals to avoid a default could have a negative effect on the economy, as shown by a last-ditch deal in 2011 that still led to the US economy's credit rating being downgraded.
Yet with only weeks remaining until the Treasury reaches the date, Mr Biden and Mr McCarthy appear resolute in their positions on the looming crisis.
“The exit strategy is very clear. Do your job. Congress must act to prevent a default,” White House Press Secretary Karine Jean-Pierre said.
Mr McCarthy said he did not support a short-term extension.
“Why continue to kick the can down the road?” he said when asked about pushing the deadline to September.
Mr McConnell said Mr Biden needed to negotiate with Mr McCarthy and said Democrats had yet to submit a proposal on the debt limit.
The US Chamber of Commerce put further pressure on the White House by calling for a “swift agreement” on the debt ceiling that would include permitting reform and a limit on discretionary spending.
Treasury Secretary Janet Yellen warned of “economic and financial catastrophe” should the US fail to address the debt limit. She added it would also undermine the power of the US dollar as the world's reserve currency.
Jerome Powell, Chairman of the Federal Reserve, last week said the central bank would not be able to protect the economy or the financial system in the event of a debt default.
“We shouldn't even be talking about a world in which [the US] doesn't pay its bills,” Mr Powell said.
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
READ MORE ABOUT CORONAVIRUS
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO
What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany
Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
ABU%20DHABI'S%20KEY%20TOURISM%20GOALS%3A%20BY%20THE%20NUMBERS
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The specs: 2017 Dodge Ram 1500 Laramie Longhorn
Price, base / as tested: Dhxxx
Engine: 5.7L V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 556Nm @ 3,950rpm
Fuel economy, combined: 12.7L / 100km
The%20specs
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European arms
Known EU weapons transfers to Ukraine since the war began: Germany 1,000 anti-tank weapons and 500 Stinger surface-to-air missiles. Luxembourg 100 NLAW anti-tank weapons, jeeps and 15 military tents as well as air transport capacity. Belgium 2,000 machine guns, 3,800 tons of fuel. Netherlands 200 Stinger missiles. Poland 100 mortars, 8 drones, Javelin anti-tank weapons, Grot assault rifles, munitions. Slovakia 12,000 pieces of artillery ammunition, 10 million litres of fuel, 2.4 million litres of aviation fuel and 2 Bozena de-mining systems. Estonia Javelin anti-tank weapons. Latvia Stinger surface to air missiles. Czech Republic machine guns, assault rifles, other light weapons and ammunition worth $8.57 million.
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
