President Joe Biden planned on Sunday to speak directly with House Speaker Kevin McCarthy on Monday, hoping to salvage talks to raise the debt limit that have stalled in recent days while he was abroad at the Group of Seven summit.
"The president wants to borrow more money from China to pay people to stay home," McCarthy said.
With talks frozen on Saturday as each side accused the other of being unreasonable, Biden was frequently briefed on the status of negotiations and directed his team to set up the call with McCarthy. Biden, attending the meeting of the world's most powerful democracies, tried to reassure them on Saturday that the United States would not default, a scenario that would rattle the world economy. He said he felt there was headway in the talks.
Negotiations heading into the weekend had been dizzying. McCarthy said Friday it was time to “pause” talks but then the two sides convened again in the evening, only to quickly call it quits for the night.
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