Biden is ‘confident’ he can reach an agreement with Republicans on the debt ceiling

Joe Biden said he was “confident” of reaching a deal with Congress to avoid an unprecedented default on the US debt, as he sought to meet a central Republican demand and add new work requirements to anti-poverty programs. The door was left open for

The US president spoke from the White House on Wednesday as he prepared to travel to Japan for a G7 leaders’ summit, as the fiscal impasse in Washington poses a major risk to the global economy and financial system.

Biden said Tuesday a meeting with congressional leaders, including Republican Speaker Kevin McCarthy, was “civil and respectful,” and that all parties understood “the consequences of failure to pay our bills.”

Biden said, ‘I am confident that we will reach an agreement on the budget and America will not default.’ “We are going to come together because there is no alternative way to do the right thing for the country. We have to move forward.

Biden will return to Washington on Sunday to oversee debt ceiling talks after cutting short the rest of his international trip, which included stops in Papua New Guinea and Australia. Treasury Secretary Janet Yellen has warned that a default could occur by June 1 if Congress does not act to raise the borrowing limit.

The White House and Republicans in Congress are discussing a fiscal deal that would set limits on discretionary spending over the next few years. McCarthy has advocated further cuts to the budget, while Biden is seeking to include them.

Republicans are also pushing to add new work requirements for Americans to qualify for the government’s massive anti-poverty plans, from health care to nutritional aid and cash assistance for needy families. That demand has sparked a backlash among Democrats on Capitol Hill.

Biden said he would not accept stricter eligibility for Social Safety Net programs that would affect people’s “medical health”, but said it was “possible there may be others”, even if they already exist. Haven’t gone “too far” – it may be possible to suggest a compromise.

The two sides are also debating on enclosing a proposal to expedite the granting of permissions to large industrial projects. It is not clear how long the debt limit will be extended, but the goal is to extend it long enough before 2025 to avoid a new stand-off.

Biden’s relatively upbeat tone came as the White House and Republicans scaled down the number of negotiators trying to reach an agreement in the coming days, a move that was welcomed by congressional leaders.

“I am optimistic that we now have a structure that can work. The time frame is what is difficult,” McCarthy told Fox Business Network on Wednesday. “The amount we spent in the past to curb inflation, We have to spend less than that, we have to be less dependent on China, we have to improve our supply chain, we have to include more people in the workforce.

US markets followed the remarks, with the S&P 500, Nasdaq and Dow Jones gaining more than 0.5 percent on the day.