Talks to broker a deal on the US debt ceiling ended on Monday without a breakthrough although both sides suggested progress had been made.
President Joe Biden and Republican House Speaker Kevin McCarthy met at the White House as they seek an agreement that would avoid a default on US debt seen as critical for the fate of the US and global economic outlook and financial markets.
“I think the tone tonight was better than any other time we’ve had discussions . . . we still will have some philosophical differences, but I felt it was productive,” McCarthy told reporters at the White House after the meeting.
“We know the deadline. I think the president and I are going to talk every day . . . until we get this done.”
Biden later issued his own statement with a similar assessment. “I just concluded a productive meeting with Speaker McCarthy about the need to prevent default and avoid a catastrophe for our economy,” he said.
“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."
Russ Mould at AJ Bell said: “Experience tells investors that these stand-offs always end with a last-minute deal so the market is mostly taking this saga in its stride, particularly given commentary from both sides seems to be increasingly conciliatory.”
“Just how close Washington must push for there to be a genuine fear of default is an open question, but right up to the eleventh hour, or in other words the end of this month, the expectation is likely to remain that a deal will be done.”