Joe Biden called on Republicans to “take the threat of default off the table” after failing to reach a breakthrough in his first big meeting with congressional leaders over a looming fiscal crisis in the world’s largest economy.
The US president’s appeal sets the stage for negotiations that will dominate US politics and potentially reverberate around global financial markets over the coming weeks. White House staff and congressional aides are expected to hold new discussions in the coming days, and party leaders are due to meet Biden again on Friday for another session.
US Treasury secretary Janet Yellen has warned the US could face a historic and damaging default on its bonds and other obligations in early June if Congress fails to act to raise the country’s $31.4tn debt ceiling, at a time when financial markets are already jittery over the impact of banking turmoil and high interest rates.