Biden, McCarthy: No deal on US debt ceiling

US President Joe Biden met with Republican House Speaker Kevin McCarthy on Monday, but the two failed to reach an agreement on a deal to raise the debt limit.

After the meeting with the president, McCarthy said although an agreement was not reached, the two made progress and the talks were productive.

The House Speaker said that the negotiations will continue in an effort to come to some kind of deal on raising the debt ceiling. In a post on social media, the Republican Speaker said there is a path for the president to avoid defaulting on the debt.

Biden called the meeting "productive." In his statement, he wrote: "We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement."

US Treasury Secretary Janet Yellen repeated her warning that the US could be unable to pay its bills as soon as June 1.

In her letter sent to the congressional leadership on Monday, she wrote: "we estimate that it is highly likely that Treasury will no longer be able to satisfy all of the government's obligations if Congress has not acted to raise or suspend the debt limit by early June, and potentially as early as June 1."

US media quoted economists as saying that the government has "a bit more room" compared to Yellen's projections. But they added there was "no margin for error" and they also said estimates related to cash balances and other extraordinary measures were subject to change.