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Democrats were not as positive about a quick time frame, but the White House called the meetings "productive and direct." Republicans have refused to vote to lift the debt ceiling past its $31.3 trillion limit unless Biden and his Democrats agree to spending cuts in the federal budget. Going forward, the talks will be narrowed for more engagement between House Republicans and the White House, McCarthy said. White House adviser Steve Ricchetti and budget director Shalanda Young will lead discussions for the administration. "We can raise the debt ceiling if we limit what we're going to spend in the future," McCarthy told reporters.

Biden sat down in the Oval Office with House of Representatives Speaker McCarthy, Senate Majority Leader Chuck Schumer, House Democratic leader Hakeem Jeffries and Senate Republican leader Mitch McConnell. "We're just getting started," Biden told reporters just after 3 p.m. EDT (2000 GMT), before ushering them out the door so the meeting could begin. Biden is trying to reach a debt ceiling deal by June 1 to lift the threat of economic calamity. The White House announced Biden may be forced to skip a stop in Australia during an Asia trip due to the debt limit drama. "We can raise the debt ceiling if we limit what we're going to spend in the future," McCarthy told reporters.

☆ S&P 500, Dow fall, dragged by Home Depot outlook, US retail sales
▼ + stars: | 2023-05-16 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +4 min

Home Depot (HD.N) shed 1.73%, the biggest drag on the Dow Industrials and among the heaviest weights on the S&P 500 after the home improvement retailer cut its annual sales forecast and projected a steeper-than-expected decline in profit. The Commerce Department reported retail sales rose 0.4% in April, short of the estimate for an increase of 0.8%. That slowing along with recent negotiations over the U.S. debt ceiling has focused attention on when the central bank will pause hiking, or cut interest rates. Cleveland Fed President Loretta Mester said she does not think the central bank can hold interest rates steady yet. The S&P 500 posted 10 new 52-week highs and 12 new lows; the Nasdaq Composite recorded 42 new highs and 163 new lows.

WASHINGTON, May 16 (Reuters) - Democratic President Joe Biden and top congressional Republican Kevin McCarthy are expected to discuss new work requirements for benefits programs for low-income Americans during Tuesday's debt ceiling negotiations, sources familiar with the talks said. Expanding the work requirements has been a key demand of Republicans, who are also pushing for spending cuts in exchange for their votes to raise the debt limit. "We can raise the debt ceiling if we limit what we're going to spend in the future," McCarthy told reporters. The current deadlock has rattled investors, sending the cost of insuring exposure to U.S. government debt to record highs. 2 Senate Republican John Thune told reporters the talks appear to have "too many cooks."

WASHINGTON, May 16 (Reuters) - Democratic President Joe Biden and top congressional Republican Kevin McCarthy will sit down on Tuesday to try to make progress on a deal to raise the U.S. government's $31.4 trillion debt ceiling and avert an economically catastrophic default. House of Representatives Speaker McCarthy on Tuesday told reporters that his party, which controls the chamber by a 222-213 margin, would only agree to a deal that cuts spending. "We can raise the debt ceiling if we limit what we're going to spend in the future," McCarthy told reporters. Tuesday's White House meeting, which will include Biden, McCarthy, Democratic Senate Majority Leader Chuck Schumer, top Senate Republican Mitch McConnell and top House Democrat Hakeem Jeffries, is due to begin at 3 p.m. EDT (1900 GMT). 2 Senate Republican John Thune told reporters that the talks appear to have "too many cooks."

White House officials have described the talks as constructive, but McCarthy on Monday warned that he believed little progress had been made. Democrats including Senate Majority Leader Chuck Schumer, who is also expected to attend Tuesday's White House meeting, said that talks were proceeding in a "serious way." 'TOO MANY COOKS'Some observers have raised concerns that the five-party talks -- featuring Biden, McCarthy, Schumer, top Senate Republican Mitch McConnell and top House Democrat Hakeem Jeffries -- are too unwieldy to make progress. 2 Senate Republican John Thune told reporters that the talks appear to have "too many cooks." "As we've said all along, it is Biden and McCarthy," Thune said.

☆ AOC says Biden choosing to compromise with the GOP on a debt ceiling deal would be 'profoundly destructive,' and the White House should 'expect pushback on nearly any significant concession'
▼ + stars: | 2023-05-16 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Biden is set to meet with top lawmakers on Tuesday to discuss a potential debt ceiling agreement. McCarthy passed a bill in the House that would raise the debt ceiling through March of next year, and it was accompanied by over $4.5 trillion in spending cuts. Even so, some progressive lawmakers have warned the president that he should not bend on Democratic priorities to raise the debt ceiling. Multiple reports have suggested that the White House was considering compromising on rescinding unspent pandemic funding and energy permitting reform in a debt ceiling deal. Democrats – including President Biden – have been clear: these dangerous proposals are not going anywhere.

☆ US government CDS spreads decline as debt ceiling negotiations progress
▼ + stars: | 2023-05-16 | by ( ) www.reuters.com time to read: +1 min

NEW YORK, May 16 (Reuters) - A measure of the cost to insure exposure to U.S. government debt declined on Tuesday as Democratic President Joe Biden and top congressional Republican Kevin McCarthy edged closer to a deal to avoid a debt default. Spreads on U.S. one-year credit default swaps, market-based gauges of the risk of a default, declined to 155 basis points from 164 basis points on Monday, according to S&P Global Market Intelligence data. Spreads on five-year CDS decreased to 69 basis points from 72 bps on Monday. Investor jitters around a possible U.S. default have intensified in recent weeks as the deadline to raise the government's borrowing cap looms closer than what many in the market had anticipated. Reporting by Davide Barbuscia; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

☆ DeSantis slams Trump for dodging question on 6-week abortion ban, doubles down on his support for the issue: 'I was proud to do it'
▼ + stars: | 2023-05-16 | by ( Kimberly Leonard | ) www.businessinsider.com time to read: +4 min

He criticized DeSantis' six-week ban in Florida as 'too harsh.' Ron DeSantis of Florida put pressure on former President Donald Trump Tuesday to answer whether he'd sign a six-week abortion ban into law. "I signed the bill, I was proud to do it," DeSantis said of the six-week ban. Voters also overwhelmingly support allowing abortions in cases of rape, incest, or when a pregnancy is life threatening. The Trump campaign did not immediately respond to an Insider email requestion a response to DeSantis' latest abortion comments.

☆ Here's where Biden and McCarthy stand on debt ceiling talks heading into today's meeting
▼ + stars: | 2023-05-16 | by ( Emma Kinery | ) www.cnbc.com time to read: +3 min

President Joe Biden hosts debt limit talks with House Speaker Kevin McCarthy, R-Calif., in the Oval Office at the White House on May 9, 2023. McCarthy sang a different tune, telling NBC News on Monday outside the Capitol, "I still think we're far apart." The White House has maintained that Biden intends to go to the G-7 summit in Japan later this week, but the president himself has said that could change depending on the debt ceiling talks. Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default. Treasury Secretary Janet Yellen warned last week failure to hike the debt ceiling would cause an "economic catastrophe."

The poll found that 76% of Americans said the two sides must reach a deal because a default would put added financial stress on families like theirs. That included 84% of self-described Democrats and 77% of self-described Republicans. Some 49% said Congress needs to quickly raise the debt ceiling without conditions to avert default, echoing Biden's position. But 51% of Americans said the debt ceiling should not be raised without substantial spending cuts - the position held by Republicans who hold a majority in the House of Representatives. That view was held by 69% of Republicans and 42% of Democrats, the poll found.

[1/2] The United States Department of the Treasury is seen in Washington, D.C., U.S., August 30, 2020. In her second letter to Congress in two weeks, Treasury Secretary Janet Yellen confirmed that the agency will be unlikely to meet all U.S. government payment obligations by early June, triggering the first-ever U.S. default. The debt ceiling could become binding by June 1, she said. She said she will provide an additional update to Congress next week as more information becomes available. The non-partisan Congressional Budget Office last week said the United States faces a "significant risk" of defaulting on payment obligations within the first two weeks of June without a debt ceiling hike, with payment operations uncertain throughout May.

☆ Tech lifts Nasdaq, Treasury yields gain as debt ceiling debate plods on
▼ + stars: | 2023-05-15 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

[1/2] A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 11, 2023. "It feels like there's some optimism regarding talks on the debt ceiling," said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. European stocks ended the session higher as investors eyed ongoing U.S. debt ceiling negotiations and Turkey's impending election runoff. Emerging market stocks rose 0.53%. Gold edged higher in opposition to the weakening dollar as the debt ceiling standoff wore on, and investors clung to hopes of interest rate cuts by year-end, despite comments from Fed officials.

☆ Wall Street wavers, Treasury yields gain as debt ceiling debate plods on
▼ + stars: | 2023-05-15 | by ( Stephen Culp | ) www.reuters.com time to read: +3 min

[1/2] A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 11, 2023. European stocks pared initial gains and were last nominally higher as investors eyed ongoing U.S. debt ceiling negotiations and Turkey's impending election runoff. The pan-European STOXX 600 index (.STOXX) rose 0.12% and MSCI's gauge of stocks across the globe (.MIWD00000PUS) gained 0.14%. Emerging market stocks rose 0.39%. Gold edged higher in opposition to the weakening dollar as the debt ceiling standoff wore on.

Biden told reporters on Sunday that he thought both sides wanted to reach a deal. Staff from the two camps met through the weekend for talks that White House officials described as constructive. Republicans say there is plenty of time. Biden has insisted that Congress must increase the country's borrowing capacity without conditions, but the White House says it is also willing to discuss budget matters with Republicans who control the House of Representatives. The longer the two sides take to reach a deal, the smaller it is likely to be, he said.

☆ Trump tells Republicans 'to do a default' — risking the US economy — if the GOP doesn't get 'massive' spending cuts
▼ + stars: | 2023-05-11 | by ( Brent D. Griffiths | ) www.businessinsider.com time to read: +3 min

Trump suggested that Republicans risk the US and global economy if Biden doesn't give in to their demands. The former president said the GOP would "have to do a default" if more spending cuts don't accompany a debt limit increase. As soon as early next month, the Treasury Department will no longer be able to use special measures to delay breaching the debt ceiling. The debt ceiling does not authorize new spending, but lawmakers, especially conservatives, often tie an increase in the debt limit to spending cuts. The former president's comments are particularly striking as both parties traditionally try to avoid blame for a debt ceiling standoff.

But some areas of potential compromise emerged after a White House meeting on Tuesday. Deep disagreements remained over competing pressures for spending cuts versus tax increases. Meanwhile, the White House reiterated its backing for legislation speeding government permitting of energy projects by setting maximum timelines. House and Senate Republicans, meanwhile, have said they will not authorize any additional borrowing without an agreement to cut future spending. The last time the nation got this close to default was in 2011 - also with a Democratic president and Senate with a Republican-led House.

Time is tight to avoid a historic, economically destabilizing default, which the Treasury Department has warned could come as soon as June 1, but some areas of potential compromise emerged after a Tuesday White House meeting. Deep disagreements remained over competing pressures for spending cuts versus tax increases. Meanwhile, the White House reiterated its backing for legislation speeding government permitting of energy projects by setting maximum timelines. A White House fact sheet distributed on Wednesday said the administration "supports the important reforms" contained in a bill by Democratic Senator Joe Manchin. House and Senate Republicans, meanwhile, have said they will not authorize any additional borrowing without an agreement to cut spending.

Biden signaled an openness to Republicans' demand to claw back some unused money for COVID relief, which is less than $80 billion. House of Representatives Speaker McCarthy told reporters that Biden also indicated a willingness to work on speeding up permitting for energy projects, a goal that went unmet in 2022. "Default is not an option," Biden told reporters after Tuesday's meeting. House and Senate Republicans, meanwhile, have said they will not authorize any additional borrowing without an agreement to cut spending. The last time the nation got this close to default was in 2011 - also with a Democratic president and Senate with a Republican-led House.

WASHINGTON — President Joe Biden will meet with congressional leaders Tuesday as Washington scrambles to lift the debt ceiling with less than a month before the federal government is set to run out of money. Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default. But House Republicans have said they will not lift the limit if Biden and lawmakers do not agree to future spending cuts. The White House has stressed that while it is open to discuss spending cuts, it will not negotiate with Republicans on the debt ceiling. If the meeting is indeed a negotiation, then the bill House Republicans passed last month effectively serves as the GOP's opening offer to the White House.

The US could breach the debt ceiling and run out of money to pay its debts as soon as June 1. A White House official previously told Insider that Biden would stress that Congress "must take action to avoid default without conditions." Additionally, Wall Street's response to the debt-ceiling crisis is different this time around. Even so, he added, this debt-ceiling crisis "seems much more dangerous" than the ones from the Obama years. Biden has options to avoid a debt-ceiling crisis that don't involve CongressTuesday's meeting between Biden and congressional leadership aims to break through the logjam.

☆ Confused about the debt ceiling? Here's what you need to know
▼ + stars: | 2023-05-09 | by ( Emma Kinery | ) www.cnbc.com time to read: +6 min

What is the debt ceiling? Unlike a credit card, though, the expenses were already approved by Congress, so the debt ceiling does not pertain to new spending. The debt ceiling was last raised in December 2021 by $2.5 trillion, capping the limit at $31.381 trillion. If Congress does not agree to lift the debt ceiling, the government will not have money to pay its bills and will default on its debt. The White House has remained steadfast that it is Congress's responsibility to raise the debt ceiling without conditions, as was done three times under the Trump administration.

"There are a variety of different options, but there are no good options. "The only option that really leaves our economy in good shape - and our financial system - is raising the debt ceiling." "It's trusted, and it is the ultimate safe asset and a failure to raise the debt ceiling, impairing the U.S. credit rating, would put that at risk. Yellen told lawmakers last week that Treasury will likely be unable to pay all the government's bills as early as June 1 without an increase in the federal debt limit. Because the government spends more than it takes in, lawmakers must periodically raise the debt ceiling.

☆ Opinion | Are Republicans Willing to Raise the Debt Ceiling?
▼ + stars: | 2023-05-08 | by ( The Editorial Board | ) www.nytimes.com time to read: +3 min

The federal debt totals about $24.6 trillion, equal to roughly 94 percent of the nation’s gross domestic product, a high level by historical standards. The debt ceiling, however, is not a useful mechanism for preventing the federal government from living beyond its means. But that limit does not stop the government from incurring new obligations that can be met only by raising the debt limit. As a result, as this board wrote in 1961, “The debt limit does not limit the debt.”Republicans who have seized on debt ceiling votes as useful leverage are playing a dangerous game. But there is a difference between talking about the federal debt and talking about the debt ceiling.

☆ In Debt Limit Talks, Biden and Republicans Start Far Apart
▼ + stars: | 2023-05-08 | by ( Jim Tankersley | ) www.nytimes.com time to read: +1 min

President Biden is set to welcome Speaker Kevin McCarthy and other top congressional leaders to the White House on Tuesday for a pivotal round of discussions about the nation’s taxes, spending and debt as a potentially catastrophic government default rapidly approaches. The talks come just weeks before the United States is expected to run out of cash to pay its bills unless the nation’s borrowing cap is lifted. Like previous moments of brinkmanship, the discussions have echoes of 2011 and 2013, when congressional Republicans refused to raise the debt ceiling unless a Democratic president agreed to curb federal spending and reduce budget deficits. The meeting is not expected to produce anything close to final agreement on a fiscal plan that could include raising the debt limit. Mr. Biden wants to expand federal spending and reduce future debt, largely by raising taxes on high earners and large companies.

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