There is still no agreement in place regarding the US debt ceiling. This was stated by House Speaker Kevin McCarthy after a new meeting with President Joe Biden on Monday, according to CNBC.

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McCarthy expressed optimism about the negotiations. He said that the latest conversation with Biden was “productive” and “professional,” adding that the tone of the conversation was the best so far.

McCarthy also stated that both sides’ teams will continue negotiations overnight.

“The President and I are aware of the deadline, so I think we will be talking every day… until we get this done,” McCarthy said.

Both Biden and McCarthy have acknowledged that one of the key points in the discussions is still the issue of spending limits, one of the Republicans’ crucial demands but so far a red line for the White House.

If the debt ceiling is not raised, the US risks being unable to meet its payment obligations as early as June. This would result in suspended wages for public employees and a potentially lowered credit rating, leading to higher borrowing costs for the country and a negative impact on financial markets.

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