"Finding compromise is exactly how governing in America is supposed to work and exactly what the American people voted for just three months ago," said McCarthy, whose Republicans won a narrow majority in the House of Representatives in November's election. "Defaulting on our debt is not an option, but neither is a future of higher taxes, higher interest rates and an economy that doesn't work for working Americans," McCarthy said. House Republicans want to use the debt ceiling, which covers the spending programs and tax cuts Congress previously approved, as leverage to push spending cuts, after two years of Democratic control of the House and the Senate. Biden on Tuesday is expected to insist that raising the debt limit is not negotiable and U.S. lawmakers should not use it as a "bargaining chip," his top economic adviser Brian Deese said on Monday. "This bedrock idea that the United States has met all of its financial obligations for its existence as a country isn't something that anybody should be using as a bargaining chip. It's not a negotiable item," Deese said. Biden seemed to question McCarthy's ability to keep Republicans in line last week, calling McCarthy "a decent man, I think," but noting the concessions he made to become speaker in January. Those included changing a rule of the chamber to allow any member to call for a vote that would remove him, rather than requiring a majority from either party. Despite what appears to be a standoff, McCarthy emerged from a meeting with Biden last week saying he believed the two could find common ground.
A day later, McCarthy and Biden sat next to each other at the National Prayer Breakfast, and the speaker later told reporters the president had agreed to meet again. White House press secretary Karine Jean-Pierre said the White House had been in touch with McCarthy's staff on next steps. She declined to say when the two would speak again. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ FACTBOX-The U.S. Treasury's tools to avoid breaching debt limit EXPLAINER-Washington creeps toward a debt catastrophe, again EXPLAINER-Shutdown? Default? Washington's risky new debt ceiling standoff FACTBOX-U.S. House Republicans' many proposals for spending cuts in debt-ceiling debate FACTBOX-U.S. debt ceiling: A straightforward vote is not the usual path GRAPHIC: Understanding the debt ceiling GRAPHIC: U.S. government approaches its debt ceiling again FACTBOX: Possible workarounds to avoid default FACTBOX-When might the U.S. default? Timeline of key events in debt limit battle ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by David Morgan; Additional reporting by Doina Chiacu and Rami Ayyub; Editing by Scott Malone, Jonathan Oatis and Josie Kao)
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